The Greater Phoenix office market experienced a decline in direct vacancy during second quarter, falling 40 basis points to 15.2 percent, according to a report released by Colliers . A trend of converting office properties to industrial usage resulted in removal of nearly 700,000 square feet from the office inventory which contributed to the drop of vacancy.

Tenant demand has improved in the Phoenix office market, resulting in positive net absorption for second quarter totaling 286,309 square feet. Class A assets lead the market in net absorption year-to-date, illustrating strong tenant demand for best-in-class buildings that offer an array of amenities. Demand from larger user created 14 new direct deals of more than 20,000 square feet, doubling the number of transactions signed in

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