5 Arizona office submarkets among Top 100 most expensive in U.S.

Edward Settle
Edward Settle

In the newest report published by PropertyShark, which ranks the country’s 100 priciest office submarkets by sale price per square foot, five Arizona office submarkets are among the Top 100 most expensive per square foot in 2022.

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Here are some highlights of the findings:

• Arizona is one of 3 states that were home to 4 of the 100 most expensive office submarkets of 2022. Thus, the states placed 4th for most entries on the list, following Texas and New York with 6 entries each, Florida’s final add-up of 13, and California’s lead total of 34.

• All Arizona entries belong to the Phoenix market, with Camelback East – ranked #55 – being the state’s most expensive office submarket of 2022 where office space sold for $310 per square foot, followed right after by the Chandler submarket – ranked #56 – where the average was $305 per square foot.

• Two Scottsdale submarkets made the list: the Airpark submarket at #61 with an average price of $294 per square foot, and the Shea Corridor submarket at #94 with a $248 per square foot average. Meanwhile, Gilbert had an average price of $271, ranking #77.

• The Western region accounts for the largest total number of entries claiming half of the 100 most expensive office submarkets of 2022 with entries across 6 states.

• Overall, Arizona had the 11th-highest average sale price of $207 for office space in 2022, compared to a national average of $227 per square foot.

In recent years, life science hubs — with Boston at the forefront — dislodged traditional finance and tech hubs as the nation’s most expensive destinations for office space. In the past year, demand for life sciences stayed strong, with established hubs also making their presence felt.

For the second year in a row, Cambridge, Mass., is America’s most expensive submarket for office space, largely determined by high-stakes biotech office sales. The remainder of the top 10 most expensive office submarkets spanned both coasts, although the most expensive submarkets at a state level were concentrated in California. To make the cut, submarkets had to have a minimum of three transactions of office properties larger than 25,000 square feet last year. 

Key Takeaways:

• Cambridge, Mass., stayed at the top of the list of most expensive office submarkets by sale price for the second year in a row with a price per square foot of more than $1,800.

• The next 9 most expensive submarkets hailed from Silicon Valley; Los Angeles; Manhattan, N.Y.; and Seattle.

• California provided 34 of the 100 most expensive office submarkets, followed by Florida with 13 and Texas and New York with six each.

• The Golden State also had the highest statewide sale price of $390 per square foot, compared to a national average of $227.

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