In the Metro Phoenix office market the net absorption was positive 51,938 square feet on 377 completed, direct-deal transactions, including completed subleases; 408 leases were transacted in the second quarter, down from the first quarter total of 630 deals and nearly 50 percent off the pace from a year ago, when 821 direct and sublease deals were signed in the second quarter of 2019, according to NAI Horizon.
Thirteen buildings were delivered in the second quarter this year, adding 504,202 square feet of office inventory, which now totals over 193 million square feet of office space in Metro Phoenix.
Thirty-one office buildings were under construction at mid-year, which are expected to add nearly 4 million square feet of commercial office product.
The vacancy rate increased nominally in the second quarter, to 12.2 percent — from 12.0 percent at the end of the first quarter — exactly where vacancy was a year ago, mid-year 2019. Most of the vacancy increase w
