OFFICE MARKET COMMENTARY
The Phoenix Office Market ended the fourth quarter 2004 with a vacancy rate of 15.7%. The vacancy rate was totaling positive 1,565,202 square feet in the fourth quarter. Vacant sublease space decreased in the quarter, ending the quarter at 1,261,614 square feet. Rental rates ended the fourth quarter at $20.11, an increase over the previous quarter. A total of 40 buildings delivered to the market in the quarter totaling 1,460,702 square feet, with 2,475,121 square feet still under construction at the end of the quarter.
Rental Rates: The average quoted asking rental rate for available office space, all classes, was $20.11 per square foot per year at the end of the fourth quarter 2004 in the Phoenix market area. This represented a 1.3% increase in quoted rental rates from the end of the third quarter 2004, when rents were reported at $19.86 per square foot.
INDUSTRIAL MARKET COMMENTARY
The Phoenix Industrial market ended the fourth quarter 2004 with a vacancy rate of 11.1%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 1,154,280 square feet in the fourth quarter. Vacant sublease space decreased in the quarter, ending the quarter at 1,351,158 square feet. Rental rates ended the fourth quarter at $7.03, a decrease over the previous quarter. A total of 21 buildings delivered to the narket in the quarter totaling 900,877 square feet, with 2,588,370 square feet still under construction at the end of the quarter.
Rental rates: The average quoted asking rental rate for available Industrial space was $7.03 per square foot per year at the end of the month quarter 2004 in the Phoenix market area. This represented a 3.2% decrease in quoted rental rates from the end of the third quarter 2004, when rents were reported at $7.26 per square foot.
The average quoted rate within the Flex sector was $10.86 per squrae foot at the end of the fourth quarter 2004, while Warehouse rates stood at $5.90. At the end of the third quarter 2004, Flex rates were $10.97 per square foot, and Warehouse rates were $6.25. |
