Phoenix office market is beginning to show a positive shift in total net absorption, according to an analysis from Kidder Mathews .

Market Highlights

YTD total Net absorption totals 867.2K square feet.

3Q25 sales volume reached 991K square feet.

Total vacancy rates decreased 140 bps QOQ to 23.6%.

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Market Drivers

The Phoenix office market recorded a positive direct net absorption of 226.1K square feet in 3Q25, led by Chandler, which recorded the largest gain at 241.2K SF.

Class A space saw a positive direct net absorption for the quarter of 194.9K SF and maintained a positive YTD direct net absorption of 583.3K square feet. Both Class A and Class B spaces saw strong sublet absorption, totaling 417.7K SF and 224.7K SF

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