Phoenix Office Rent Price & Sales Report

2023 Office Space Rent & Sales

  • $26.61 2023 Avg. Asking Rent
  • 1.85% Y-o-Y Avg. Asking Rent Change
  • 19.40% 2023 Office Vacancy Rate
  • $426.8M2023 Total Office Sales
  • $154.15Avg. Sale Price/SF

Phoenix office price per square foot in 2023 was $26.61 on average. This marked a +1.85% change in office space price per square foot compared to the previous year. The local office market recorded an average vacancy rate of 19.40% across all asset classes combined. The 39 transactions that closed here throughout 2023 amounted to a total sale volume of $426.8M. Phoenix office space commanded an average sale price per square foot of $154.15.

See how this market compares to the national average: U.S. office space rent & sales.

Average Rent by Office Class

2023 Average Office Rent per Square Foot

  • Phoenix Class A & A+ Office Space$31.03
  • Phoenix Class B Office Space$22.72
  • Phoenix Class C Office Space$20.06
  • Arizona Class A & A+ Office Space$32.35
  • Arizona Class B Office Space$23.61
  • Arizona Class C Office Space$27.68

Phoenix, AZ Office Asking Rents by Class

Average office rent in Phoenix rested at $26.61 per square foot in 2023. As would be expected, office rent price showed some variation from one asset class to another. As such, the asking rent for class A office space in Phoenix averaged $31.03 per square foot. Across all submarkets, class B office space recorded an average asking rent of $22.72 per square foot. Meanwhile, assets encompassing class C office space saw asking rents of $20.06 per square foot, on average. Comparably, statewide Arizona average office rents by class in 2023 were: $32.35 per square foot for class A office space; $23.61 per square foot for class B office space; $27.68 per square foot for class C office space.

2023 Office Vacancy Rates in Phoenix

Submarket Asking Rents Vacancy Rates
Phoenix - Central Business District $34.62 13.39%
Phoenix - Desert View $34.00 13.77%
Phoenix - Camelback East $32.15 14.36%
Phoenix - Paradise Valley Village $30.91 27.24%
Phoenix - Gateway $29.15 27.49%
Anthem $27.90 42.54%
Phoenix - West $27.29 12.21%
Phoenix - Central Corridor $26.93 23.80%
Phoenix - Center City $25.63 13.79%
Phoenix - Deer Valley $22.30 15.23%
Phoenix - North Mountain $22.15 26.28%
Phoenix - South $20.87 25.44%
Data provided by Commercial Edge
Submarket differences in factors such as property mix, degree of accessibility, and availability of amenities influence not only variation in office rent price, but also in vacancy rates. The overall office vacancy rate on the Phoenix market was 19.40% in 2023. Looking at the market stats on a more granular level, data shows that the lowest office vacancy rate in Phoenix was 12.21% in the Phoenix - West submarket, while the highest office vacancy in the market was 42.54%, recorded in Anthem.

Office Spaces for Rent in Arizona

Phoenix Office Sale Price per SF

  • $154.152023 Avg. Price per SF
  • -40.29%Y-o-Y Avg. PpSF Change
  • $426.8M2023 Office Sales Volume
  • 392023 Number of Transactions

Phoenix, AZ Sale Price per SF Trend

  • Phoenix Avg. Sale Price per SF in 2023$154.15
  • Arizona Avg. Sale Price per SF in 2023$180.53
Phoenix office space cost in 2023 marked a -40.29% change compared to the previous year. The sale price for office space in Phoenix averaged $154.15 per square foot in 2023, across all market subdivisions and asset classes. Conversely, the statewide Arizona average office sale price during the same time period was $180.53 per square foot.

2023 Office Sales Volume

  • Phoenix, AZ Total Office Sales Volume in 2023 $426.8M
  • Phoenix, AZ Total Number of Office Sales Closed in 2023 39
A total of 39 deals closed on the Phoenix office market in 2023, adding up to a yearly sales volume of $426.8M. Notably, the largest transaction on the market saw Grove - 4200 East Camelback, The change hands for $48,500,000 on 2/17/2023.

Largest Phoenix Office Sales in 2023

Property name Address Date Price
Grove - 4200 East Camelback, The 4200 East Camelback Road 2/17/2023 $48,500,000
Blackhawk Corporate Center I 20401 North 29th Avenue 12/28/2023 $24,000,000
Riverpoint IV 4150 South Riverpoint Pkwy 6/29/2023 $22,989,410
Blackhawk Corporate Center II & III 2902 West Agua Fria Fwy 12/28/2023 $22,000,000
Lincoln Union 475 East Lincoln Street 10/3/2023 $21,650,000
Data provided by Commercial Edge

Coworking Spaces in Arizona

2023 Office Construction in Phoenix, AZ

  • Phoenix, AZ Total SF under construction in 2024 72,000
Largest Office Properties Recently Completed in Phoenix
Office building Address SF Completed
The Grove - Office 4210 East Camelback Road, 85018 37,832 2024
The Grove - 4300 East Camelback 4300 East Camelback Road, 85018 181,482 2022
X Phoenix 1 200 W Monroe St, 85003 381,236 2020
Five55 Melrose 555 West Turney Avenue, 85013 24,211 2020
Park Central - The Diamond Building 3110 North Central Avenue, 85013 86,000 2019
Estrella Medical Plaza II 9321 W Thomas Road, 85037 60,000 2019
Camelback Collective 2801 E Camelback Road, 85016 118,090 2018
17 North Corporate Center - 24000 North Farmers Way 24000 North Farmers Way, 85085 313,446 2017
Allred 40 4039 E Raymond Street, 85040 89,889 2017
Norterra West 25700 N Norterra Parkway, 85027 147,642 2016

Worth noting among recent office completions on the Phoenix market is The Grove - Office, which is currently the largest new office development in the city, at 37,832 square feet.

Data provided by Commercial Edge

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This market stats report is based on analysis of city-level data that includes office properties equal to or larger than 25,000 square feet in size. Averages were calculated based on values dated January 1st 2023 through December 31st 2023. Construction pipeline data represented herein is valid as of April 2024. The information on this page was compiled using data provided by CommercialEdge, a market intelligence solution which offers comprehensive real market knowledge on all Phoenix commercial properties sized 25,000 square feet or larger.

While every effort was made to ensure the accuracy of the data presented in this report, the information is provided “as is” and neither CommercialCafe nor CommercialEdge can guarantee that the information provided is complete.