PHOENIX — Office leasing in the suburban areas of Phoenix ranked among the top in the country in 2016, according to the Phoenix Business Journal.
The Phoenix metropolitan area accounted for 8 percent of the net office leasing in the entire country, tying with Los Angeles for second. Dallas came in first, with 13 percent, a recent report from CBRE Group Inc. found.
Andrea Cross with CBRE said the suburban office market in the U.S. has “tightened at a steady clip, boosted by improving demand and low overall levels of new supply compared with previous cycles.
“Still, the suburbs are having a hard time shaking the perception that they’re struggling to keep up with the allure of vibrant downtowns,” Cross told the Phoenix Business Journal.
While millennials and various tech and creative companies still continue to seek out locations that are centralized in the city, some Phoenix suburbs, like Chandler, Gilbert and Tempe, have seen major companies establish their companies there.
“Although suburban office growth is expected to moderate in the next few years, we believe the market still has further room to run,” Cross told the Phoenix Business Journal.
“Many suburban markets are positioned for further occupancy and rent gains due to continued demand and lack of available supply, especially newer, high-quality product,” she added.
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