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Colliers 2021 Q2 Greater Phoenix Office Market Report

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Q2 2021 Office Market

Key Takeaways
  • The pace of sublease space hitting the market has slowed down
  • Chandler submarket had the largest decrease in vacancy
  • Rental rate increased 0.36% quarter-over-quarter
The Greater Phoenix office market ended Q2 2021 posting 76,690 square feet of positive net absorption, which marked the first quarter of positive absorption in over six months.

Direct vacancy increased 20 bps quarter-over-quarter and 150 bps year-over-year to end the second quarter at 14.0 percent. Rental rates marginally increased over-the-quarter by 0.36 percent, but decreased 0.07 percent year-over-year to $27.58.

Rental rates marginally increased over-the-quarter by 0.36 percent, but decreased 0.07 percent year-over-year to $27.58. 

Sublease availability increased a total of 393,368 square feet during second quarter, rising 9.7 percent over-the-quarter and 85.5 percent year-over-year.

381,499 square feet was delivered this quarter, with low vacancy of 29.8 percent. This increased the year-to-date total of new projects completed to 1,545,253 square feet.

Sales volume during second quarter totaled $466 million, driving year-to-date volume up to $926 million. This figure is equivalent to over 60 percent of total volume in 2020.

Sales volume this quarter was up 78 percent year-over-year, but down 1.4 percent over-the-quarter.

Median price per square foot increased to $196.

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Colliers 2021 Q2 Greater Phoenix Office Market Report

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Related Experts

Phillip Hernandez

Director, Research | Arizona

Phoenix

As director of research for Colliers in Arizona, Phillip Hernandez is responsible for proactively developing and implementing research objectives and directing all research activity for the Arizona offices.

He provides leading-edge, thought-provoking research and analysis of market data for use in producing quarterly statistical market reports for each property discipline, as well as other ad hoc reports, research projects and presentations. Phillip analyzes and interprets real estate trends and maintains a database of economic indicators to provide forecasts.

Regardless of the property type or sector, Phillip believes each has a story to tell and that data provides the opportunity to redefine the narrative. With a background in location analytics, he is highly experienced in interpreting complex data sets. Using the latest technology, Phillip developed a system to blend analytics with a visually attractive approach to bring data to life.

Focusing on business development, he leverages market intelligence and insights for thought leadership content strategy in support of client engagement. His goal is to strategically align research and business development efforts and present research in an easily digestible format that promotes Colliers’ market share and revenue growth.

Colleagues describe Phillip as a brilliant storyteller and a passionate, creative and experienced professional.

Phillip is an experienced research and business analyst with demonstrated success in the commercial real estate industry.

Prior to joining Colliers, Phillip served as a business analyst at CBRE, where he specialized in creating tailored research reports and unique, interactive applications and dashboards that elevated the market position of assets.

Delivering custom quarterly and annual reports, Phillip ensured that all data and research was strategically positioned towards targeted clients. He also led weekly department research meetings to develop initiatives surrounding market trends, produced innovative industry solutions and analyzed client-centric objectives.

Previously, Phillip was a GIS analyst for the central region of CBRE. Working exclusively with top-performing markets, he created unique models that illustrated custom real estate datasets through location analytics. He produced high-quality geographic and demographic maps and investigated multiple approaches to storytelling through map and market analytics.

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Casey Koziol

Associate

Phoenix

Casey Koziol is an associate for Colliers in Arizona and member of the top-producing industrial team of Don and Payson MacWilliam specializing in industrial real estate sales and leasing in the Sky Harbor Airport area, Southwest Phoenix, and Central Phoenix.

While providing both tenant and landlord representation services, Casey prioritizes his clients’ best interests to ensure their requirements are fully considered and met, from initial steps through final transaction negotiations. Casey works diligently to attract qualified tenants and buyers to his clients’ properties.

Leveraging his research expertise, Casey tracks and monitors market conditions, trends, and tenants-in-the-market to carefully guide clients throughout the leasing, acquisition, and disposition process, ensuring their best interests are represented in the final transaction negotiations. Versatile in his approach, he evaluates short- and long-term objectives, determining market rates, calculating current property values, and forecasting market trends.

Casey has a strong financial background as a finance major and deep market knowledge from his research background and lifelong residency in Arizona. Clients and colleagues describe Casey as an honest, ambitious, reliable, diligent, ethical, dedicated, and results-oriented professional, who strives for service excellence.

Casey joined Colliers in 2019, as a research analyst, delivering in-depth analysis of market conditions and trends. He compiled market statistics across all property disciplines, including industrial, office, retail, healthcare, multifamily, and land. In support of sales, leasing and business development, Casey created compelling client-facing presentations, illustrating, and interpreting real estate and economic trends.

As a participant in Colliers’ unique and intense broker training initiative, Casey paired with various senior brokerage teams for three-month periods. This afforded him the opportunity to work across property types with experienced professionals, while also generating business and building client relationships. He quickly learned to identify sites that deliver the greatest benefit to a client’s day-to-day operations.

Prior to joining Colliers, Casey served as a real estate sales and acquisitions intern at Tucson Realty & Trust Company, where he specialized in identifying potential buyers and sellers for commercial properties in the Tucson metropolitan area.

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