Phoenix office leasing continues to drag as work-from-home extends into 2021

Reduced economic activity from the pandemic has greatly impacted supply and demand patterns throughout 2020 and is likely to continue into 2021. As a result, the Phoenix market continues to witness paltry office leasing volume with less than one million square feet (msf) of office space leased for the third straight quarter. Fourthquarter activity exceeded 780,000 square feet (sf) leased, a 7.8% increase from the prior quarter, but marked a 58.1% decline from Q4 2019. While hints of optimism have emerged as the population begins to receive vaccinations, demand is expected to remain tempered until workers are able to return to the office in larger numbers this summer or fall. The largest lease completed this quarter was executed by Amazon, which committed to 50,000 sf at 1330 West Southern Avenue in Tempe.

Read the full report