Phoenix has seen a significant 1.3% year-on-year surge in office jobs from September 2023 to 2024 alongside other Sun Belt regions, ranking fourth in the national increase, topped by Houston, Dallas, and Miami. While growth in large Sun Belt markets was uneven, Phoenix saw an upswing, particularly in professional and business services sectors. The information sector, however, faced job reduction. As per the Arizona Office of Economic Opportunity data, the professional and business services sector has seen substantial growth since the pandemic.
Arizona’s unemployment rate fell from 4.2% to 3.6% in October 2024. However, some U.S. markets saw office job decreases, including the Twin Cities and Chicago. Regarding office space developments, despite job gains, Phoenix reported one of the lowest supplies, with only 555,850 square feet under construction. Boston led with the largest supply.
Office sales across the U.S. remained robust, with nearly $30 billion in sales recorded. Phoenix ranked eighth in sales volume with $1 billion in sales year to date. According to Yardi Matrix, nationally, the new supply of office space will significantly drop by 2027.
