Vacancy decreased in Q1 to 22.8% while new construction remains low The Phoenix Office of JLL has released its Q1 2026 Phoenix Office Market Dynamics report, noting a modest vacancy reduction in the first quarter and a widening deficit for the kind of highly amenitized, Class A space that today’s modern tenants seek. Total vacancy fell by 50 basis points quarter-over-quarter, to 22.8%. During that same period, absorption rose to 375,983-square-feet, more than double the 148,9