PHOENIX (November 14, 2024) -- CBRE has released Phoenix's Q3 medical office figures. Some highlights from the report follow.
Phoenix Q3 2024 Medical Office Figures
- There were 123,058 sq. ft. of negative net absorption to close out the third quarter of 2024.
- The quarter-over-quarter vacancy rate increased 50 basis points to 14.3%.
- The overall base rate decreased 0.5% quarter-over-quarter to $25.29 per sq. ft.
While Phoenix has continued to see a steady demand from varying medical tenants, the third quarter of 2024 posted 123,058 sq. ft. of negative net absorption. Class B and C products ended the quarter with a combined 124,540 sq. ft. of negative absorption.
While no buildings were delivered in the third quarter, Rancho Santa Fe Phase II broke ground for 30,000 sq. ft. in West Phoenix.