A report by commercial real-estate services firm JLL finds demand and rents are going up. Since 2012, vacancies have dropped the most in the Camelback Corridor. That’s also where rents are highest for Class A space, typically buildings with the newest amenities.
Midtown and downtown have also seen rising rents with no new supply expected. But lawyers may find relief in the southeast and northeast parts of the Valley where JLL says nearly half a million square feet of new office space will be available this year. JLL reports abundant availabilities for firms looking for space under 10,000 square feet.
Nationally, JLL sees law firms reducing square footage per attorney and addressing real estate costs. Over the next two years, JLL predicts increased negotiating leverage for firms based on growing supply and slowing demand.
