Smaller office buildings surrounding major Phoenix hospitals maintained positive absorption throughout 2023

While the Phoenix general office market did not see positive absorption quarter over quarter in 2023, smaller offices surrounding major Phoenix hospitals bucked this trend and maintained positive absorption throughout the year. The subsector achieved 34,647 sf in positive absorption and was a standout in 2023 for the overall Phoenix office market.
When looking at the identified 8 major Phoenix hospitals, densely populated areas such as Midtown and South Scottsdale led with positive absorption throughout 2023. South Scottsdale, especially offices around the HonorHealth Scottsdale Osborn location, was the only area to maintain positive absorption during every quarter of 2023. If we focus our attention on smaller office spaces around the major healthcare campuses, we see continued high demand and strong competition, showcasing its positive impact on the Phoenix office market.

March 8, 2024

US-AZ-PHX Phoenix