Phoenix Office Rent Price & Sales Report

2024 Office Space Rent & Sales

  • $27.58 2024 Avg. Asking Rent
  • 3.63% Y-o-Y Avg. Asking Rent Change
  • 20.90% 2024 Office Vacancy Rate
  • $686.6M2024 Total Office Sales
  • $133.08Avg. Sale Price/SF

Phoenix office price per square foot in 2024 was $27.58 on average. This marked a +3.63% change in office space price per square foot compared to the previous year. The local office market recorded an average vacancy rate of 20.90% across all asset classes combined. The 49 transactions that closed here throughout 2024 amounted to a total sale volume of $686.6M. Phoenix office space commanded an average sale price per square foot of $133.08.

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

Average Rent by Office Class

2024 Average Office Rent per Square Foot

  • Phoenix Class A & A+ Office Space$32.91
  • Phoenix Class B Office Space$23.56
  • Phoenix Class C Office Space$19.34
  • Arizona Class A & A+ Office Space$33.12
  • Arizona Class B Office Space$24.39
  • Arizona Class C Office Space$18.69

Phoenix, AZ Office Asking Rents by Class

Average office rent in Phoenix rested at $27.58 per square foot in 2024. 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 $32.91 per square foot. Across all submarkets, class B office space recorded an average asking rent of $23.56 per square foot. Meanwhile, assets encompassing class C office space saw asking rents of $19.34 per square foot, on average. Comparably, statewide Arizona average office rents by class in 2024 were: $33.12 per square foot for class A office space; $24.39 per square foot for class B office space; $18.69 per square foot for class C office space.

2024 Office Vacancy Rates in Phoenix

Submarket Asking Rents Vacancy Rates
Phoenix - Central Business District $35.12 23.36%
Phoenix - Camelback East $34.20 16.14%
Phoenix - Gateway $29.97 27.77%
Phoenix - North Gateway $29.26 21.01%
Phoenix - West $29.02 11.67%
Phoenix - Desert View $28.00 23.53%
Phoenix - Paradise Valley Village $27.91 33.79%
Phoenix - Central Corridor $26.48 20.60%
Phoenix - South $26.22 19.33%
Phoenix - Deer Valley $24.87 30.66%
Anthem $21.77 13.52%
Phoenix - North Mountain $21.61 28.94%
Phoenix - Center City $21.46 8.28%
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 20.90% in 2024. Looking at the market stats on a more granular level, data shows that the lowest office vacancy rate in Phoenix was 8.28% in the Phoenix - Center City submarket, while the highest office vacancy in the market was 33.79%, recorded in Phoenix - Paradise Valley Village.

Office Spaces for Rent in Arizona

Phoenix Office Sale Price per SF

  • $133.082024 Avg. Price per SF
  • -13.67%Y-o-Y Avg. PpSF Change
  • $686.6M2024 Office Sales Volume
  • 492024 Number of Transactions

Phoenix, AZ Sale Price per SF Trend

  • Phoenix Avg. Sale Price per SF in 2024$133.08
  • Arizona Avg. Sale Price per SF in 2024$155.40
Phoenix office space cost in 2024 marked a -13.67% change compared to the previous year. The sale price for office space in Phoenix averaged $133.08 per square foot in 2024, across all market subdivisions and asset classes. Conversely, the statewide Arizona average office sale price during the same time period was $155.40 per square foot.

2024 Office Sales Volume

  • Phoenix, AZ Total Office Sales Volume in 2024 $686.6M
  • Phoenix, AZ Total Number of Office Sales Closed in 2024 49
A total of 49 deals closed on the Phoenix office market in 2024, adding up to a yearly sales volume of $686.6M. Notably, the largest transaction on the market saw 24th at Camelback II change hands for $97,900,000 on 10/30/2024.

Largest Phoenix Office Sales in 2024

Property name Address Date Price
24th at Camelback II 2325 East Camelback Road 10/30/2024 $97,900,000
24th at Camelback I 2375 East Camelback Road 4/25/2024 $86,100,000
Phoenix Operations Center Campus 1825 East Buckeye Road 6/5/2024 $44,300,000
Abrazo Scottsdale Medical Office Building 3815 East Bell Road 7/19/2024 $36,000,000
Great American Tower 3200 North Central Avenue 5/28/2024 $24,470,000
Data provided by Commercial Edge

Coworking Spaces in Arizona

2024 Office Construction in Phoenix, AZ

  • Phoenix, AZ Total SF completed in 2024 72,278
  • Phoenix, AZ Total SF under construction in 2025 187,000

During 2024, 72,278 square feet of new office space were delivered across the market. At the close of 2024, the Phoenix office inventory included 1 buildings equal to or larger than 25,000 square feet, which comprised 72,278 square feet of office space. Looking forward, development activity throughout 2025 is estimated to add 187,000 square feet of office space to the market, before year-end.

Largest Office Properties Recently Completed in Phoenix
Office building Address SF Completed
4210 at The Grove 4210 East Camelback Road, 85018 32,000 2025
The Grove - 4300 East Camelback 4300 East Camelback Road, 85018 181,482 2022
22644 North 17th Avenue 22644 North 17th Avenue, 85027 26,295 2022
4550 E Bell Rd, Building 3 4550 E Bell Rd, 85032 6,488 2022
555 West Turney Avenue 555 West Turney Avenue, 85013 24,211 2020
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 4210 at The Grove, which is currently the largest new office development in the city, at 32,000 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 2024 through December 31st 2024. Construction pipeline data represented herein is valid as of February 2025. 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.