For institutional fund strategies, Camelback Corridor carries the strongest investor flag in Phoenix, with prime yields around 7.2%.

  • Trophy submarket (Camelback Corridor) carries the strongest investor flag.
  • Prime yield: 7.2%.
  • Core funds buy income; value-add buys repositioning of secondary stock.
  • Cap-rate spread between trophy and secondary has widened post-2022.

Phoenix office fund strategy and flag

For institutional fund strategies, Camelback Corridor carries the strongest investor flag in Phoenix, with prime yields around 7.2%.

TL;DR

  • Trophy submarket (Camelback Corridor) carries the strongest investor flag.
  • Prime yield: 7.2%.
  • Core funds buy income; value-add buys repositioning of secondary stock.
  • Cap-rate spread between trophy and secondary has widened post-2022.

Where core funds buy

Core capital concentrates in trophy stock with long-WAULT income. In Phoenix, that's Camelback Corridor and assets like Block 23, Esplanade Place.

Where value-add looks

Value-add capital looks at secondary Class A and convertible Class B with repositioning angle. The trophy/secondary cap-rate spread has widened post-2022, which has reopened the value-add basis for repositioning plays.

Key facts

cityPhoenix
countryUnited States
regionAmericas
classARentLocal34 USD/sqft/yr
classARentUsd$34/sqft/yr
vacancy23.4%
typicalLeaseYears7
typicalRentFreeMonths12
submarkets5
primeYieldPct7.2%
primeYield7.2%
trophyAnchorCamelback Corridor

Frequently asked questions

Where do core funds buy in Phoenix?
Trophy submarket — Camelback Corridor — and the most defensible long-WAULT assets within it.

Editorial provenance

Reviewed by Class A Atlas Editorial Desk — House byline · global editorial team. Last updated 2026-04-15. See our methodology and editorial standards.

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