TAKEAWAYS

• The overall availability rate in Phoenix climbed to 23.5% in the second quarter, increasing 80 basis points over the previous quarter, and exhibiting an increase for the fifth straight quarter.
• Phoenix has observed significant and sustained growth in sublease availability throughout the pandemic, with availability rising to approximately 3.4 million square feet (msf) at the midpoint of 2021.
• Occupiers began to re-enter the market in greater numbers this quarter, as evidenced by the 1.4 msf leased, and marking the third straight quarter in which leasing activity increased over the prior period.
• While some occupiers have delayed office re-opening plans in the wake of recent increases in COVID-19 infections, the Phoenix market should continue to see increased activity as tenants take advantage of favorable conditions.

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