TAKEAWAYS

• Overall availability across the Phoenix market ticked up slightly at the close of the year, increasing to 23.6%, and was up 130 basis points over the course of the year.
• While sublease availability remained elevated above historical averages at 4.7 million square feet (msf), the rate of growth came to a near halt, since many tenants by now have determined their future occupancy requirements.
• Leasing volume in 2021 was markedly improved, increasing 55.2% over the previous year to 5.6 msf, while robust levels of construction starts and new deliveries indicate restored confidence in the regional economy.
• While asking rents have inched upwards in 2021 by 0.4% to $28.19 per square foot, concessions levels have been on the rise in Phoenix, which has put downward pressure on overall net effective rents over the past 18 months.

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