Suburban Office Renaissance: How Arizona’s Secondary Markets Are Attracting Tenants and Investors

Arizona’s commercial real estate landscape is shifting. While downtown Phoenix and other urban cores remain important, suburban and secondary markets are experiencing a renaissance, driven by changing tenant preferences, population growth, and evolving work patterns. Developers and investors are increasingly turning their attention to locations outside the traditional city center, recognizing the long-term potential of these high-growth areas.

Hybrid work models are a major factor driving this shift. Companies no longer require large centralized office towers, opting instead for smaller, strategically located spaces closer to where employees live. Suburban markets like Chandler, Tempe, Goodyear, and Peoria offer convenient commutes, ample parking, and modern facilities that appeal to tenants seeking both efficiency and accessibility. These areas provide a balance of workforce proximity and lifestyle amenities that urban cores cannot always match.

Cost efficiency is another driver. Suburban offices often offer lower lease rates, reduced operating expenses, and opportunities for modern build-to-suit or adaptive reuse projects. Investors are drawn to these markets because they combine lower entry costs with strong growth potential, creating opportunities for value-add projects and long-term appreciation.

Infrastructure and community development are also supporting suburban office growth. Road expansions, transit improvements, and nearby residential and retail development make secondary markets increasingly attractive for tenants and investors alike. Employers benefit from access to a growing labor pool, while developers can leverage existing utilities and services to accelerate project timelines.

Finally, amenities and experience are moving to the suburbs. Office campuses now feature outdoor workspaces, fitness centers, collaborative areas, and wellness programming—amenities once reserved for urban locations.

The suburban office renaissance in Arizona reflects a broader trend: flexibility, convenience, and quality of life are shaping where companies choose to locate. Secondary markets are no longer peripheral—they are central to the state’s CRE growth story, offering strategic opportunities for tenants, developers, and investors alike.

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