Phoenix Office Investment Report
Phoenix Metro Area, Second Quarter 2017
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West Coast Tech Companies Reinforce Solid Recovery of Office Sector

Ease of doing business and skilled talent fuel company expansions. Robust job gains in traditionally office-using sectors, particularly by insurance and tech-related companies, are driving improvements in Phoenix’s office market. A relatively lower cost of doing business drives California companies to develop a presence in the Valley, where a high level of education attainment provides a skilled workforce. Strong demand for office space has compressed the vacancy rate significantly since its height in early 2011 and the rate is now at its lowest level in nine years. Continued demand in the office sector and steady office-using employment gains will support another year of asking rent increases.