Phoenix Office Figures Q2 2026

Over the past 3 years, the office market shifted from deep contraction to clear expansion. At the start of the period, net absorption was negative 798,000 sq. ft. By Q2 2026, net absorption improved to 490,000 sq. ft., marking a quarter-over-quarter increase of263,000 sq. ft. On a year-over-year basis, net absorption improved by 488,000 sq. ft. Vacancy finished the quarter at 19.1%. This represented a tightening of 120 basis points quarter-over-quarter. Vacancy hasalso compressed by 270 basis points year-over-year. Availability ended the quarter at 22.8%. The ratedecreased by 50 basis points quarter-over-quarter andwas down 240 basis points year-over-year. Average asking rents closed the quarter at $32.30 per sq. ft. Rents increased 0.7% quarter-over-quarter and were 3.4% higher year-over-year. Leasing activity reinforced this improvement, as Consumer Cellular signed a 123,000 sq. ft. commitment in the Northeast Valley / Scottsdale submarket. AssistRx also subleased 49,790 sq. ft. in the Southeast Valley, while Honeywell Aerospace committed to 29,000 sq. ft. in East Phoenix. There were also 2 owner/user sales recorded during Q2 2026 totaling 197,000 sq. ft., which helped lift the quarterly net absorption figure. The construction pipeline remained stable at 451,000 sq. ft. with 3 projects active across the Valley.