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2022 Q1 Greater Phoenix Office Market Report

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Q1 2022 Phoenix Office Hero

Q1 2022 Office Market

As the activity in the Office market increases, so have rental rates, increasing 2.5% Y-o-Y ending at $28.18 PSF. Despite strong leasing activity in the first quarter, the market was faced with several large move-outs which resulted in -143,579 SF of net absorption. The number of sublease deals signed over 10,000 SF was also up this quarter, nearly tripling the amount signed Y-o-Y. Investment sales first quarter were heavily driven by activity in the month of March, which escalated sales to reach $893 million in first three months. 

Key Takeaways 

  • Speculative development breaks ground 
  • Rental rates increased 2.5 percent Y-o-Y to $28.12/SF 
  • Highest number of sublease deals signed since the pandemic 

The Phoenix office market continues to illustrate a strong recovery and growth. As of February 2022, Phoenix metro had grown its labor force by 89,600 employees compared to February 2021, which represents a 4.1 percent increase and office using jobs have increased 2.4 percent. Information supersector jobs have increased by 5.4 percent, Professional and Business Services supersector have increased by 3.2 percent, and Education and Health Services supersector jobs increased 2.87 percent over the same period. 

As more and more companies plan to return to the office, they are also reconfiguring what their office space will look like. As an incentive, we are seeing many companies offer a flexible work schedule allowing employees to work from home a couple of days a week. The Phoenix economy is in a healthy state and continues to attract new companies to expand and relocate. The tech company Sendoso is a perfect recent example of a company utilizing the strong labor market of Phoenix to relocate its headquarters out of San Francisco. 

Speculative development that was forced to pause in 2020 will be re-evaluated in the short coming months and the market will once again see new construction break ground. 

Q1 2022 Phoenix Office SRC

2022 Q1 Greater Phoenix Office Market Report

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Related Experts

Phillip Hernandez

Senior Research Manager, 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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John Archer



As a research analyst for Colliers in Arizona, John Archer delivers in-depth analysis of current market conditions and trends for brokerage professionals and their clients. He compiles market statistics across all property disciplines, including industrial, office, retail, healthcare, multifamily and land.

Using various in-house and online resources, John monitors real estate transactions and dissects data to analyze and understand what is happening throughout the various property sectors of commercial real estate. John researches and prepares data and background narrative information for market reports and proposals for use by brokers, staff and management, to serve the interests of Colliers’ clients.

Applying his strong background in analytics and research, John tracks all aspects of the commercial real estate market to illustrate and interpret real estate and economic trends. He leverages that knowledge on behalf of Colliers and its clients. John also maintains sales and lease comp databases, monitors tenants-in-the-market activity, and responds to ad hoc research requests.

Clients and colleagues describe John as an outgoing, accountable and respectful professional who collaborates with the team to provide outstanding service to Colliers and its clients. He excels in a deadline-driven environment.

Prior to joining Colliers, John was a real estate agent with the Barclay Group, where he focused on zoning and site selection for property developments. He was also responsible for preparing competitor analyses to dissect performance data.

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