YUMA, Ariz- Phoenix has the worst office vacancy rate among the largest U.S. cities across 30 biggest North American markets.
However, Phoenix tied in first place with San Francisco for high-tech job growth over the past four years with almost 50 percent growth. That is according to a new report by the Commercial Real Estate Firm.
Vacancy rates are high all throughout the country and the more tenants that are in the building the higher the growth rate becomes not only in the Desert Southwest but in all cities across the country.
It also provides more job opportunities in several job fields.
Office vacancy rates are high and Tom Pancrazi, President of Pancrazi Real Estate says this is an issue that’s everywhere.
Pancrazi said, “We’re seeing some improvement in the market but there’s still a lack of tenants looking for space. Typically we lack between anywhere from 12-36 months behind Phoenix market. So we’ll watch the Phoenix market and we’ll notice if they’re improving out there.
Pancrazi mentions that the growth is a positive factor however that’s something we haven’t seen here in the Desert Southwest since the market crash back in 2008. The overall vacancy rate is near 10 percent.
Pancrazi adds, “A lot of these buildings it’s good to have vacant space on the market available for clients coming on in and looking for space. Today it’s definitely a tenant market because of the amount of space out there.”
However, finding the right space that accommodates the user still can be difficult however it would bring more jobs if there weren’t so many vacant buildings.
Pancrazi said, “Bringing in the jobs would steer more home sales, new home sales construction, and from there it helps the retail market because the populations growing.”