Phoenix and Denver are the two largest markets that we provide services. We track the commercial office space and industrial space to better understand our clients, market trends, and to make more informed business decisions.
Continuation of MARKET CONDITIONS IN PHOENIX AND DENVER
Nationally return-to-office rates have eclipsed 50% in January 2023, which is the first time since the start of the pandemic. Tuesdays are the most popular day for office workers while Fridays are the least. There is a slight uptick in office space vacancy rates in Denver and Phoenix. Their rates are hovering slightly above the national median for the top 25 largest US cities. In 2022, Denver office leasing activity was 4.5 million sq. ft while Phoenix was 4.6 million sq. ft. which is still trending behind pre-pandemic numbers. What is trending in the office space are upgrades. Amongst office workers, there continues to be a demand for more collaborative spaces, social rooms, and upgrades to technology infrastructure.
Phoenix and Denver have experienced an economic boom in the industrial space since the great recession. They continue to serve as great distribution hubs and knowledge worker centers for the American West. In summary, both cities continue to be growing and evolving. Based on the economic KPIs below, and what economists are writing, these metropolises will continue to add jobs but at a slower rate than what they did in 2022.