Q3 Showed Decreased Rent and Increased Vacancies

Phoenix Q3 office rates had increasing vacancies with decreasing rents. The rent numbers do not take into account the large concessions of free rent being given by many landlords in order to increase occupancy. Concessions are also taking the form of tenant improvements, which, cash strapped tenants cannot afford to finance on their own. Some major local office brokers are hopeful that rates will solidify as early as the end of 2010 as the market stabilizes and we being to see a more natural demand based on increasing population and desire to live and work in the Valley.

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