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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.


Colliers 2021 Q2 Greater Phoenix Office Market Report

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Related Experts

Phillip Hernandez

Director, Research | Arizona


As research manager 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.

Prior to joining Colliers, he served as a business analyst at CBRE, where he specialized in creating tailored research reports, as well as unique and interactive applications and dashboards that elevated the market position of assets. Phillip delivered weekly research updates, with relevant lease and sale comps, custom competitive sets and current market activity.

He provided complex market and trend analyses, monitored an extensive database of proprietary market data, and delivered custom quarterly and annual reports that were strategically positioned towards targeted clients. He also led weekly department research meetings to develop initiatives surrounding market trends, produce innovative industry solutions and analyze 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. Phillip produced high-quality geographic and demographic maps, and investigated multiple approaches to storytelling through map and market analytics.

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Bob Mulhern

Senior Managing Director


Colliers in Arizona is a full-service commercial real estate firm, providing integrated services to clients locally and globally for more than 40 years. As senior managing director, Bob Mulhern manages brokerage operations for the Colliers offices in Phoenix and Scottsdale, with more than 100 professionals and staff.

Bob and his team provide a full range of services to owners, investors, occupiers and developers of real estate. Their goal is to deliver superior services to clients and assist with all their commercial real estate requirements, regardless of location.

As a well-respected industry veteran with more than 35 years of experience, Bob has a highly successful track record managing brokerage, development and property management organizations. Prior to joining Colliers in 2009, Bob was president of Reliance Companies for five years. Reliance is a Phoenix-area development firm, specializing in office and industrial development and property management.

Previously, Bob served as vice president of development for four years at Ryan Companies, a nationally recognized developer, design-builder and real estate manager. His experience includes six years at CBRE in Phoenix as the senior managing director and designated broker. In addition to brokerage and development experience, Bob has managed more than 10 million square feet of commercial inventory.

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