Phoenix Sky Harbor Airport Submarket Rents Rising
Office leasing around Sky Harbor Airport is on the rise, according to a new report.
Commercial real estate firm JLL found the vacancy rate around the airport dropped more than 9 percent between 2017 and 2018. During the same period, rental rates increased from $19.63 to $21.95 per square foot.
In a prepared statement, JLL Managing Director Mark Gustin said being close to downtown Tempe and Phoenix and crisscrossed by three major freeways makes the submarket attractive to companies.
“Metro Phoenix is on a 22-quarter run of net positive office space absorption, so in some ways the airport submarket reflects what’s happening on a macro scale across the Valley,” Gustin said. “Based on the numbers, it is just much more pronounced in the airport area.”
Still, the airport submarket vacancy rate of 23.4 percent is higher than the Valley’s average of 19.8 percent. And the Valley’s rental is higher at $27.04 per square foot, according to JLL Research.
The submarket boundaries are generally from East Washington Street to East Guadalupe Road, and South 16th Street to South Kyrene Road.