Q2 2021 Office Market
- 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
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.