Smooth Sailing for Phoenix’s Office Developments

by Adriana Marinescu

Office construction continued steadily across Greater Phoenix in February, according to CommercialEdge, with no additions to the metro’s pipeline. Some 2 million square feet of space were underway in The Valley, accounting for 1.5 percent of stock. All current developments are slated for completion throughout 2022.

Most projects will add traditional office space to The Valley’s inventory. However, 435,000 square feet, or 21.8 percent of the total, pertain to medical space and one of the metro’s largest medical office developments will soon be added to inventory. The 275,157-square-foot Phoenix VA Outpatient Clinic is coming online at 400 N. 32nd St., in the Phoenix-Center City submarket. US Federal Properties is behind the development of the five-story building that has a projected May delivery.

Although the office pipeline stayed the same, more office space is in sight as one of Phoenix’s largest mixed-use projects kicked off in February. PV, the redevelopment of the 100-acre Paradise Valley Mall in Phoenix, was designed to include residential, office and hospitality space, as well as retail and entertainment venues. RED Development broke ground on the project’s first phase, which will feature a 400-unit apartment community developed by StreetLights Residential, a Whole Foods Market, a Harkins dine-in theater and three restaurants. Completion is expected in mid-2024.

CommercialEdge covers 8M+ property records in the United States. View the latest CommercialEdge national monthly office report here.

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