Phoenix Market Update: Planned Developments Soar

Greater Phoenix saw only a small addition to its office pipeline in September, according to CommercialEdge data. The metro had some 2 million square feet of office space underway, representing 1.5 percent of stock. More than 1.2 million square feet, or 60 percent of the total, are slated for completion by the end of the year.

At the same time, The Valley witnessed a significant boost in planned projects. Its total pipeline, including planned and ongoing developments, was brought to 8.5 percent of stock, surpassing the national index by 250 basis points.

One of the planned projects that moved forward in September is 250 Rio, a future Hines development that will add 216,000 square feet of office space to Tempe’s inventory. In the beginning of the month, the developer acquired the 1.8-acre swath of land where the 14-story office building will rise. Groundbreaking is expected in late 2022, after the project receives the City’s zoning approval.

Also in September, the City of Litchfield Park officially started construction on Litchfield Square, a 400,000-square-foot mixed-use project designed to include office and retail spaces, as well as residential units and a 2.5-acre park. Slated for development in five phases, the $52 million project formerly known as City Center has an estimated completion date of 2028.

CommercialEdge covers 8M+ property records in the United States. View the latest CommercialEdge national monthly office report here.