News Ticker

Chandler, Tempe Are Hot Spots in The Valley for Office Space

By Luci Scott for The Arizona Republic

Office vacancyActivity is picking up in the office market, with parts of Chandler and Tempe becoming the Valley’s hottest spots for construction and demand for space.

Mesa and Gilbert aren’t far behind, experts say.

The Valley’s overall office vacancy rate is just under 24 percent — down from 26 percent in recessionary 2010. The vacancy rate in the Southeast Valley is 18.8 percent, the lowest vacancy rate in all of metro Phoenix, according to commercial brokerage CBRE.

“Chandler and Tempe are probably the two brightest spots in metro Phoenix,” said Bryan Taute, senior vice president of the CBRE’s office-market team in Phoenix.

More buildings will soon come out of the ground in the Southeast Valley, Taute predicted. He said other developers are either trying to buy land, acquire land or are designing buildings. New construction in the Southeast Valley is largely a result of large areas of quality space.

“Even though the vacancy in metropolitan Phoenix is under 24 percent, it’s mostly made up of small blocks of Class B and Class C space,” Taute said. “For that reason, users are looking for higher-quality space, and therefore we’ve seen a surge in build-to-suit activity.”

Read more at AZCentral. Note: AZCentral is premium content. Readers are permitted 20 free article views per month.