Since 2024, Phoenix has converted or demolished 3.3 million square feet of office space — more than the previous decade combined — with another 4.1 million square feet in the pipeline. Residential and industrial uses are driving the trend, as 1980s-era buildings on valuable infill sites become targets for redevelopment. Industrial demand is particularly strong, with first-quarter net absorption up 200% year-over-year as developers rush to meet logistics and manufacturing needs near the TSMC semiconductor campus.
