What is the average Class A rent in Phoenix?

Around 34 USD/sqft/yr ($34 USD) across the broader Class A index. Trophy submarkets like Camelback Corridor command 20–40% above that.

How many months of rent-free are normal in Phoenix?

12 months on a 7-year deal is the standard benchmark. Lease-up product or tenants with strong covenant strength can push higher.

Are rents rising or falling in Phoenix?

The Phoenix Class A market is currently flat. Vacancy is 23.4%, which sets the negotiating context.

Headline Class A rent in Phoenix is around 34 USD/sqft/yr ($34 USD), with 12 months of typical rent-free on a 7-year term.

Headline Class A rent: 34 USD/sqft/yr ($34 USD).
Trophy submarket rents (Camelback Corridor) push to roughly $42/sqft/yr.
Typical concessions on a 7-year deal: 12 months free rent.
Vacancy stands at 23.4% — market trend is flat.
Use effective rent (face minus PV of concessions), not headline, to compare deals.

Phoenix Class A office rents and incentives

Headline Class A rent in Phoenix is around 34 USD/sqft/yr ($34 USD), with 12 months of typical rent-free on a 7-year term.

TL;DR

Headline Class A rent: 34 USD/sqft/yr ($34 USD).
Trophy submarket rents (Camelback Corridor) push to roughly $42/sqft/yr.
Typical concessions on a 7-year deal: 12 months free rent.
Vacancy stands at 23.4% — market trend is flat.
Use effective rent (face minus PV of concessions), not headline, to compare deals.

Headline rent vs. effective rent

Asking rents in Phoenix are quoted in USD per sqft per year. Across the broad Class A index the figure is 34, but the trophy tier in Camelback Corridor reaches roughly $42/sqft/yr. Always discount headline rent by the present value of free rent and fit-out-capex">tenant improvement allowance to land on effective rent — the only number that compares cleanly across deals.

Rent-free and TI

Standard Phoenix concessions on a 7-year Class A lease run to 12 months of base-rent abatement. Trophy lease-ups can push rent-free 25–40% above that benchmark. Local cost-of-occupancy is also shaped by tax — 21% federal corporate income tax plus Arizona's 4.9% corporate income tax. Maricopa County property tax. Effective combined rate around 26%.

Where rents land by submarket

Camelback Corridor sits at the top end (~$42/sqft/yr). Downtown Phoenix clears around $32/sqft/yr as the prime tier. The full submarket map is on the Phoenix city page.

Key facts

city	Phoenix
country	United States
region	Americas
classARentLocal	34 USD/sqft/yr
classARentUsd	$34/sqft/yr
vacancy	23.4%
typicalLeaseYears	7
typicalRentFreeMonths	12
submarkets	5
primeYieldPct	7.2%
trophyRent	$42/sqft/yr
primeRent	$32/sqft/yr

Frequently asked questions

What is the average Class A rent in Phoenix?: Around 34 USD/sqft/yr ($34 USD) across the broader Class A index. Trophy submarkets like Camelback Corridor command 20–40% above that.
How many months of rent-free are normal in Phoenix?: 12 months on a 7-year deal is the standard benchmark. Lease-up product or tenants with strong covenant strength can push higher.
Are rents rising or falling in Phoenix?: The Phoenix Class A market is currently flat. Vacancy is 23.4%, which sets the negotiating context.

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.

Primary sources for this page

CBRE Marketview reports — CBRE
JLL Office Insight — JLL
Cushman & Wakefield Marketbeat — Cushman & Wakefield
Savills World Research — Savills
Colliers Global Office Outlook — Colliers

Full sources index · Submit a correction