Modified-gross structures with operating-expense pass-throughs.

  • Typical lease length: 7 years.
  • Typical rent-free: 12 months.
  • Vacancy: 23.4%; trend flat.
  • Modified-gross structures with operating-expense pass-throughs.

Phoenix office lease norms

Modified-gross structures with operating-expense pass-throughs.

TL;DR

  • Typical lease length: 7 years.
  • Typical rent-free: 12 months.
  • Vacancy: 23.4%; trend flat.
  • Modified-gross structures with operating-expense pass-throughs.

Structure

Modified-gross structures with operating-expense pass-throughs. 7-10 year terms standard. Free rent of 10-14 months and TI of $80-$110/sqft typical on a 10-year Class A deal. Concession-rich market.

Negotiating levers

Free rent and TI remain the most negotiable line items; landlords prefer concessions to face-rent cuts because they preserve headline rent and implied valuation. Always model effective rent (face minus PV of concessions).

Key facts

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

Frequently asked questions

What's a typical lease term in Phoenix?
7 years for institutional Class A. Shorter terms are achievable on smaller floor plates with stronger covenants.
How is rent quoted in Phoenix?
In USD/sqft/year. We also publish a USD-normalised view ($34/sqft/yr) for cross-market comparison.

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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