Phoenix office leasing activity remains modest to start 2021; overall confidence slowly building

The Phoenix office market continued to exhibit low leasing volumes, although deal activity began to show signs of renewed life at the start of 2021. First-quarter leasing activity pushed beyond one million square feet (msf), a 28.5% increase from the prior quarter, but is still down 26.8% from Q1 2020. Notable office leases included the fintech company Robinhood committing to 34,259 square feet (sf) and Align Technology leasing 33,976 sf, both at The Watermark in Tempe. With touring activity on the upswing as companies reengage the market and strategize on post-pandemic office needs, leasing is expected to slowly increase throughout the year. Still, conditions resembling normalcy may be a year or more away.

Read the full report