According to the New York Stock Exchange, Phoenix leased over 3 million square feet of office space in 2016. This made Phoenix second in the United States in leasing space out to residential and business areas.
What was even more surprising was the fact that Phoenix outpaced Dallas, Seattle, and Austin in leasing office space. Only Chicago leased out more net office space at 3.16 million square feet.
Phoenix was much better than the great city of Manhattan, which saw a negative net of -1.56 million square feet, raising serious concerns for the future.
Overall, Phoenix had some of the cheapest office spaces in the country. Some of the areas that saw the biggest growth in 2016 were in Chandler, Tempe, and Scottsdale Airpark.
Karsten Peterson, who is the Director of Managing for Jones Lang LaSalle (JLL) which is a real estate and investment firm, spoke to the amazing growth that Phoenix saw in leasing out space in 2016: “Though metro Phoenix office rents have been on the rise recently, we’re still looked at by much of Corporate America as a lower-cost option — with the added benefit of being a growth economy offering an educated workforce and an ample inventory of modern office space. This, combined with our amenities and quality of life, are attracting 100,000 new residents a year and a constant influx of new companies.”
This is good news for the future growth and development of the Phoenix Metro Area, bringing in more and more people and businesses to the state.
The top cities that leased out the most space in 2016 included Chicago, Phoenix, Seattle, Boston, and Dallas to round off the top five, followed by Salt Lake City, Austin, Los Angeles, and Silicon Valley.
The future looks bright for leasing in the state of Arizona.