Smaller floorplates in the Phoenix office market show lower vacancy rates than pre-pandemic levels

Despite the pandemic driving overall office vacancy rates to historic highs due to the rise of remote work, a surprising trend has emerged. Traditional office spaces with smaller floorplates in the Phoenix market, specifically under 15,000 square feet, are experiencing a revival with higher occupancy and lower vacancy rates than before the pandemic.
From Q4 2019 to Q1 2024, the vacancy rate for offices with floorplates under 10,000 square feet dropped by 50 basis points to 4.5%, and for those between 10,000 and 15,000 square feet, it fell by 120 basis points to 12.4%. Additionally, availability rates, which include space listed as vacant before a lease's expiration, have decreased, further highlighting the growing appeal of these smaller floorplate properties.

May 22, 2024

US-AZ-PHX Phoenix