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Experts Say Demand is High for Smaller Commercial Spaces

By October 28, 2021November 14th, 2022No Comments

By Corina Vanek | Phoenix Business Journal

While national companies and larger office users have mostly slowed plans to lease office space, smaller tenants seeking space in Phoenix will still likely face competition.

Laurel Lewis, senior vice president at NAI Horizon, said lease rates have continued to go up, even during the pandemic, so tenants expecting they might get a discount on office rent, especially in hotter submarkets, might be surprised.

“There’s actually some competition for space, especially smaller spaces,” Lewis said at an Oct. 22 panel discussion hosted by Valley Partnership. “We are seeing some pretty unprecedented rates.”

Cheyne Brown, director of workplace strategy for Corgan, said companies have run the gamut of different strategies to redesign their offices to account for changes that came from the pandemic.

“We are shifting a lot of functions,” Brown said. “Clients are looking for more flexible, collaborative space and less workstations.”

Sandra Watson, president and CEO of the Arizona Commerce Authority and moderator of the panel, said Arizona has continued to attract businesses, especially manufacturing, even during the pandemic.

Manufacturing jobs in Arizona now outnumber construction jobs, Watson said, adding that Austin is the market Phoenix seems to be competing against the most.

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