Editor’s Insight: Office isn’t coming back – it’s being remade

TUCSON, AZ (Sept. 21, 2026) – The Office Trends issue of Trend Report is out this morning and from the looks of it, office isn’t coming back – it’s being remade. The office market is not returning to what it was before the pandemic. It is being remade.

After several difficult years, the numbers are finally moving in a more encouraging direction. National office demand has posted nine consecutive quarters of positive absorption, vacancies are declining, and both Tucson and Phoenix recorded improving conditions during the second quarter. Yet the recovery is not reaching every building equally.

Tenants are choosing quality, location and experience. Newer and well-maintained properties are capturing most of the demand, while older buildings without modern amenities continue to struggle. As Dave Volk explains in this issue, a traditional Class A designation is no longer enough. Buildings must continually reinvest to remain competitive, and even an older property can become a trophy asset when it offers the environment tenants now want.

Our cover story on 5151 E. Broadway illustrates that point particularly well. Tucson’s tallest office building outside downtown has maintained its position in the market by creating more than a place to work. Its tenants describe a community built around convenience, relationships and the small touches that make employees want to come to the office.

At the same time, the supply of office space is shrinking. Very little new construction is underway, while obsolete buildings are being demolished or converted to apartments, hotels, industrial uses and other purposes. The planned transformation of a Phoenix office tower into a 340-room JW Marriott is one example of how properties that no longer work as offices can begin a productive new chapter.

The reports throughout this issue point to the same conclusion. The office sector is recovering, but it is also becoming more selective. The strongest buildings are commanding higher rents and attracting tenants, while outdated properties face difficult decisions about renovation, conversion or redevelopment.

That divide will create challenges, but it will also create opportunities. The office market may be smaller than it once was, but the space that survives will be better suited to how companies and employees want to work today.

Special thanks to Cathy Jahnke for taking us inside the culture and community of 5151 E. Broadway, and to Dave Volk for placing Tucson’s changing office market within the larger national recovery. Ajay Madhvani returns with an updated comparison of Tucson, Albuquerque and El Paso, while Scott Whipple examines how professional communication continues to shape the modern workplace. We also appreciate the market research provided by PICOR, CBRE, Cushman & Wakefield and Colliers.

Thank you as well to our production team—Patti van Leer, Michael Rossmann and Jack Paddock—for their consistent support and meticulous attention to detail.

Looking ahead, you won’t want to miss our November issue exploring Development & Infrastructure Trends! As always, we welcome your feedback, ideas and contributions. Visit TrendReportAZ.com and click “Connect” to get in touch.

Karen M. Schutte
Managing Editor, TREND report