Downtown Office Space for Rent
Downtown Phoenix serves as the Central Business District for Phoenix, Arizona’s state capital. Businesses in the area provide employment for more than 685,000 workers within a 20-minute drive-time radius.
Downtown Phoenix is a thriving community for businesses and education. Top industries include financial services, legal services, construction, and administrative support. Several banks have regional headquarters here, including JP Morgan Chase, Wells Fargo, US Bank, and Bank of America. Ride-sharing company Uber has its Arizona headquarters in Downtown Phoenix. Three of the top employers in the area are Dignity Health’s St. Joseph’s Hospital & Medical Center, JPMorgan Chase & Co, and Wells Fargo.
Arizona State University, the University of Arizona, Northern Arizona University, and GateWay Community College all have buildings locally. ASU alone has more than 10,000 students.
Office Space | Downtown Phoenix Lease Data & Trends
Downtown Phoenix contains more than 6.6 million square feet of office space. Business owners will likely find several ideal office space options here because the total vacancy is more than 15%, with additional space currently under development. Downtown Phoenix has more than twice as much Class A space as Class B.
On average, Class A offices cost around $34 per square (per year) foot to rent. About 13% of these spaces are vacant and ready for new renters. Class B offices in Downtown Phoenix typically lease for $30 per square foot; currently, about 18% of these spaces are vacant.
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What Our Brokers Say About Downtown Phoenix Office Space
New businesses in Downtown Phoenix have become crucial for the neighborhood’s economic prosperity. “The Economic Capture of the Downtown Phoenix Redevelopment Area” report by Downtown Phoenix, Inc., indicates that the area is generating $9.7 billion in economic activity each year. “. . . Downtown is punching way above its weight in terms of generating resources for the city, county, and state,” David Krietor, CEO of Downtown Phoenix, Inc., said in a statement.
Downtown Phoenix boasts more than $5.5 billion new investments in office space, retail, educational facilities, convention space, and more. It now features more than 7,000 residential units, about 400 tech businesses, and a variety of startups.
Downtown Phoenix is bordered by McDowell Road to the north, Jackson Street to the south, Seventh Street to the east, and Seventh Avenue to the west. Nearby neighborhoods include Willo, Governmental Mall, Eastlake Park, and Central City South. One of the most popular areas in Downtown Phoenix is the newly transformed Arizona Center, where visitors can find not only top-notch offices but also entertainment, shopping, live music, and events.
Downtown Phoenix offers a variety of transportation options as well as plenty of parking. In fact, it has more than 25,000 parking spaces, making the area very car-friendly. One of the most popular mode of public transportation is the Valley Metro Light Rail. Another option is the Central South Mountain East RAPID commuter bus service that can deliver passengers from the 24th St/Baseline Park-and-Ride to Downtown Phoenix. Downtown is Phoenix’s most walkable neighborhood and is also ideal for biking. Grid Bikes allows travelers to rent bikes throughout the city. Those who need to fly can use the Phoenix Sky Harbor International Airport, which has more than 830 daily non-stop flights to both domestic and international destinations.
Downtown Phoenix offers something fun for everyone. Locals and visitors can visit major arts institutions, see live concerts, attend sporting events, and find unique shopping destinations. Those with artistic interests should visit the Phoenix Art Museum, the Rosson House Museum, or the Arizona Latino Arts and Cultural Center. Two of the best places to see live music are the Crescent Ballroom and Valley Bar. Talking Stick Resort Arena is the home of the Phoenix Suns and Phoenix Mercury, and Chase Field is the home of the Arizona Diamondbacks. One of Downtown Phoenix’s most interesting places to shop is Roosevelt Row, with boutique shops, street arts, restaurants, bars, and art galleries.
Businesses and entrepreneurs who secure office space in Downtown Phoenix will enjoy plenty of amenities in the area. Top Foursquare-recommended business lunch restaurants include The Arrogant Butcher, Phoenix City Grille, Stockyards Steakhouse, and The Henry. Employees can enjoy the city’s famously warm weather by taking a break at Civic Space Park, Margaret T. Hance Park, or Roosevelt Mini Park.
To learn more about Downtown Phoenix and what it’s like to do business in the area, contact or visit the Phoenix Convention Center. The Phoenix Convention Center hosts some of the largest trade shows and exhibitions in the Southwest, as well as many consumer shows and events.
Downtown Phoenix History
The City of Phoenix’s modern history began in the latter half of the 19th century when Jack Swilling traveled the White Tank Mountains in search of good land. He decided to create the Swilling Irrigation Canal Company to dig a canal designed to transfer Salt River water into the promising Salt River Valley area. By 1868, early settlers were living about four miles east of present Phoenix.
In 1870, town leaders gathered to decide where to establish a town site to receive incoming pioneers. They originally built the town site where the present Downtown Core lies. Developers laid the town’s first streets in a grid pattern and assigned the north-south streets Native American tribal names. Eventually, they changed the street names to numbers. The town grew steadily and was eventually incorporated as a city on February 28, 1881. The electrification of the Phoenix Street Railway and the establishment of the first Southern Pacific train increased trade and travel to the area.
In 1912, Downtown Phoenix gained traction as a business center. It was characterized by Victorian buildings, ground-floor retail, and pedestrian-friendly paths. Phoenix’s recovery from the Great Recession prompted key actors in Downtown to focus on developing local businesses, education, and higher-density construction.