Phoenix Market Update: Slow and Steady Development Progress

In June, Greater Phoenix saw few additions to its office pipeline, showing a slow and steady development trend. According to CommercialEdge data, 1.7 million square feet of office space was underway across the metro, 1.3 percent of existing stock.

Construction activity marked a small uptick when compared to the previous month, when some 1.5 million square feet were underway. When adding the planned projects to those under construction, the total represents 5.9 percent of stock, equal to the national figure.

While developments encompassed both traditional and medical office projects, the traditional office pipeline included roughly 1.3 million square feet of space. The Tempe submarket had the largest office pipeline, accounting for some 752,000 square feet.

RED Development’s The Grove, a $300 million mixed-use project played a big part in growing the Camelback East pipeline. With Phase I slated for completion during the second half of 2022, The Grove will feature two office buildings totaling some 261,000 square feet, the first new Class AA office campus in the area in nearly two decades.

CommercialEdge covers 8M+ property records in the United States. View the latest CommercialEdge national monthly office report here. We included properties of 25,000+ square feet in our research.