CBRE: Phoenix Medical Office Market Remains Stable Despite Slipping Fundamentals

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.

Fyll report here: Phoenix Medical Office Figures Q3 2024