By Corina Vanek | Phoenix Business Journal
Artist rendering of Grand 2 at Papago Park.
The Phoenix office market finished 2019 on a high note, with a decrease in the region’s overall vacancy rate and increases in net absorption, construction and rents, according to research from Colliers International.
In 2019, 3.4 million square feet of new office product came online in the market, and much of that product or buildings still under construction was claimed by tenants before it was even completed.
Food delivery app DoorDash leased the entire building at the Grand 2, part of the Grand at Papago Park Center, and Open Door leased more than 100,000 square feet in the Watermark, where coworking giant WeWork had already leased two floors.
“Block 23 (at CityScape) delivered at 55% leased, so we never had the whole building hit inventory,” said Phillip Hernandez, research manager at Colliers International.
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