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2022 Q2 Greater Phoenix Office Market Report

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Q2 2022 Office Market

The second quarter posted the highest level of net absorption since the start of the pandemic ending at 517,623 square feet, bringing the year-to-date total to 374,044 square feet. This healthy figure was fueled by the delivery of the 287,000-square-foot, Class A project in Tempe called 100 Mill, which delivered in April over 92 percent pre-leased. Direct vacancy decreased 70 basis points year-over-year, ending at 13.5 percent. Sublease availability continues to be relentless. An additional 740,568 square feet of sublease space hit the market during second quarter. 

Key Takeaways

  • Year-to-date sales volume reached 1.6 billion
  • Rental rates increased 3.77 percent year-over-year to 28.62 per square foot
  • 740,568 square feet of sublease space was added to the market

Despite the economic headwinds that are feared in the U.S. economy, the Phoenix MSA is experiencing an extremely healthy performance. As of May 2022, Phoenix metro had grown its labor force by 81,000 employees compared to May 2021, which represents a 3.7 percent increase. The second quarter posted the highest level of net absorption since the start of the pandemic. Investment sales volume during second quarter fell short from the first quarter, but saw significant improvement compared to second quarter 2021. 

The Phoenix economy is in a unique position to weather a downturn in the economy. The array of different industries that have moved into the market or existing companies that have expanded will help keep our area stabilized. The rapid growth and future pipeline of the labor force continues to remain robust.


2022 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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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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