Phoenix’s commercial real estate market saw 3.14 million square feet of net office space leased in 2016. That is the second most net leasing (or absorption) among major U.S. markets, according to the JLL (NYSE: JLL) commercial real estate firm. Only Chicago had more net office leasing — 3.16 million square feet. Chicago beat Phoenix by just under 14,000 square feet. But Phoenix did better for net leasing than some pretty big markets including Seattle, Los Angeles, Boston and Silicon Valley.
Manhattan actually had negative net leasing in 2016 with -1.56 million square feet of space opened up by office moves, according to JLL. Phoenix still has far cheaper office rents than the big coastal cities but saw more leasing activity last year. Most of that happened in Tempe, the Scottsdale Airpark and Chandler.