Q1 Phoenix Office Sales Up Year-Over-Year

More than 2.8 million square feet of office space traded in Greater Phoenix in the first quarter of 2022, according to CommercialEdge. The total square footage was 12 percent higher year-over-year, as some 2.5 million square feet of office space had changed hands in the metro in the first quarter of 2021.

The Valley’s office deals totaled nearly $875 million as of March, at an average price of $339 per square foot, surpassing the national $280 per square foot by 21.1 percent. The amount is more than double the value of sales that closed in the first three months of 2021, when office assets traded for a combined $389 million, at an average $238 per square foot.

All property classes were part of the sales mix; however, 18 of the 30 deals, or 60 percent, were Class B assets. Also, 86.2 percent of the total space that was sold included traditional office properties. In terms of location, more than 1.5 million square feet changed hands in urban submarkets.

In fact, the quarter’s largest transaction for square footage closed in a primary urban location. A partnership between Monarch Alternative Capital and Tourmaline Capital Partners paid $503.7 million for The Esplanade, a four-building office complex totaling 906,459 square feet in Phoenix’s Camelback East submarket. The seller was a joint venture between Clarion Partners and LBA Realty.

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.