--- title: "Flight to Quality: Why Arizona Businesses are Inspiring a Premium Tier of Class A Office Space" description: Discover why Arizona businesses are driving a “flight to quality” in commercial real estate. From return-to-office mandates to rising demand for premium Class A office space, see how quality plus location is shaping the future of Arizona’s CRE market. image: https://blog.keyser.com/hubfs/Flight%20to%20Quality.jpeg --- [Commercial Real Estate](https://blog.keyser.com/topic/commercial-real-estate) , [The Economy](https://blog.keyser.com/topic/the-economy) # Flight to Quality: Why Arizona Businesses are Inspiring a Premium Tier of Class A Office Space [By Jonathan Keyser](https://blog.keyser.com/author/jonathan-keyser) September 04, 2025 - [** ](https://twitter.com/intent/tweet?url={url}&text={title}) - [** ](https://www.linkedin.com/shareArticle?mini=true&url={url}&title={title}) - [** ](https://www.facebook.com/sharer.php?u={url}) [![audio-blog-button-2](https://blog.keyser.com/hs-fs/hubfs/audio-blog-button-2.png?width=800&height=123&name=audio-blog-button-2.png)](https://blog.keyser.com/hubfs/AI-Generated%20Media/Post%20Narration%20Audio/195568529752-TTS-1757006140030.mp3) # **Flight to Quality: Why a New Tier of Class A Space is Emerging** In today’s dynamic commercial real estate (CRE) market, one theme is cutting through the noise: **the flight to quality.**Across Arizona, business leaders and tenants are demonstrating a clear preference for newer, better-located, and amenity-rich assets—especially in the face of economic uncertainty and shifting workplace strategies. Reiterate the return to work. A **2024 **[**KPMG survey of 1,300 U.S. CEOs**](https://kpmg.com/us/en/articles/2024/kpmg-2024-us-ceo-outlook.html) found that **79% of CEO’s expect employees to be in the office full-time within three years**. As return-to-office mandates become more popular, premium Class A buildings are leased in an effort to soften the policy adoption and cater to employee comfort. ## **What “Flight to Quality” Means** ![Arizona Commercial Real Estate | Arizona Tenant Advocate | rent office phoenix](https://blog.keyser.com/hs-fs/hubfs/Class%20A%20Office%20Space.jpeg?width=365&height=205&name=Class%20A%20Office%20Space.jpeg)The phrase “flight to quality” describes the movement of capital and tenants away from older, less efficient properties into Class A buildings and prime locations. It is less about chasing prestige and more about minimizing risk and maximizing long-term value**.** For businesses, this may mean higher upfront rent but lower operating costs, stronger employee attraction, and more resilient occupancy.   ## **Why Arizona Is at the Center of the Trend** Arizona’s commercial real estate market is uniquely positioned to illustrate this behavior. Phoenix, Tempe, Scottsdale, and Chandler are home to new clusters of Class A office space, fueled by overwhelming demand by tenants for this class of space. As companies from around the world flock to Arizona, we are witnessing in real time a shortage of Class A signature properties. What would have been unheard of even 12 months ago, developers are now making plans to develop new Class A properties on a speculative basis as a result of the shortfall.   In the office sector, while older Class B and C properties continue to struggle with vacancy, Class A towers in Phoenix’s core submarkets remain highly competitive. Many Class B and C properties are being evaluated for the viability of major overhauls to accommodate this “flight to quality” trend. Tenants are demanding more from each square foot—whether through sustainability features, integrated technology, or collaborative design.   Industrial real estate tells a similar story. Companies reshoring production or expanding distribution networks are seeking state-of-the-art facilities with advanced power, cooling, and logistics capabilities**.** Outdated warehouses cannot accommodate these requirements, leading occupiers to prioritize premium assets despite higher costs. ## **The Bottom Line** The [Phoenix](https://keyser.com/commercial-real-estate-phoenix/), Scottsdale, Tempe, Chandler, Peoria, and general Arizona CRE landscape is no longer about simply “location, location, location.” The new paradigm is “quality plus location.” In uncertain times, the safest move is often the smartest one—a flight to quality. And as tenants pursue this shift, they should also negotiate lease clauses that provide flexibility—such as options to expand, contract, or share in rising costs—so their real estate can adapt as business needs change.   Looking for help navigating this trend or negotiating your lease agreement? Keyser is here for you. Call us at 602.9.KEYSER or email [info@keyser.com](mailto:info@keyser.com).   --- ### **FAQs on the Flight to Quality in Arizona CRE** 1. #### ** What does “flight to quality” mean in commercial real estate?** It’s the shift of tenants and investors toward newer, well-located, and amenity-rich Class A properties. The move prioritizes long-term value, employee attraction, and operational efficiency—even if it means higher upfront costs. 2. #### ** Why is Arizona at the forefront of the flight to quality trend?** Arizona’s business hubs—Phoenix, Tempe, Scottsdale, and Chandler—are attracting global companies seeking premium office space. Demand has outpaced supply, prompting developers to plan speculative Class A projects to meet tenant needs. 3. #### ** How does the return-to-office movement impact demand for Class A buildings?** With [79% of U.S. CEOs](https://kpmg.com/us/en/articles/2024/kpmg-2024-us-ceo-outlook.html) expecting full-time office attendance within three years, companies are leasing premium Class A properties to ease policy adoption. These buildings offer the comfort, amenities, and flexibility that help employees embrace the return to office. ## Arizona Commercial Real Estate | Arizona Commercial Real Estate | Rent Office Phoenix | Phoenix Tech Companies [All posts](https://blog.keyser.com) [Jonathan Keyser](https://blog.keyser.com/author/jonathan-keyser) Jonathan Keyser is the Founder and Managing Partner of Keyser Commercial Real Estate, which has become the largest commercial real estate firm of its kind in Arizona. Jonathan is also a Founding Partner of Exis Global, which today has over 580 people worldwide exclusively representing occupiers of commercial real estate. He is also the founder of a small investment fund that invests in emerging technology companies within Arizona, supporting and helping to grow the state's startup ecosystem. Jonathan was named “The Commercial Real Estate Disruptor” by USA Today. He is a #1 Wall Street Journal Best Selling Author, for his book, “You Don’t Have to be Ruthless to Win”. Jonathan is a highly sought-after keynote speaker, is widely recognized as a thought leader, has been featured in hundreds of articles, publications, and podcasts, and has been named a “Top 20 Virtual Keynote Speaker” nationally. As an entrepreneur, Jonathan has built Keyser into an eight-figure firm, which was named one of the Top 50 Most Trustworthy Companies in America by The Silicon Review. Jonathan is also one of the most connected business leaders in Arizona. He is an active member of Greater Phoenix Leadership, Young Presidents Organization (YPO), Chief Executive Organization (ceo), and the Million Dollar Speaking Group (MDSG) within the National Speakers Association (NSA). With almost 30 years of experience in the Commercial Real Estate Industry, Jonathan’s firm represents occupiers of space exclusively, both domestically and internationally across a broad range of industries. Jonathan is sought out by companies worldwide for his expertise in real estate and business acumen. He is particularly skilled at identifying creative strategies to align real estate with business requirements, designing and implementing unique solutions to complex real estate challenges, and resolving landlord-tenant conflicts where negotiations have deteriorated due to rising hostilities. Jonathan is happily married to his wife, Susanna, and has six children. His mission is to change the business community through selfless service, and his entire firm is built upon this philosophy. Jonathan is known throughout the business community as someone who loves to help others and who goes out of his way to be of service to people across the community. [** ](https://jonathankeyser.com/) [** ](https://www.linkedin.com/in/jonathankeyser/) ##### You might also like ![How California Closets Found the Right Space for Growth](https://blog.keyser.com/hubfs/AdobeStock_1322531871.jpeg) [How California Closets Found the Right Space for Growth](https://blog.keyser.com/how-california-closets-found-the-right-space-for-growth) September 04, 2025 ![Shell vs Turnkey Space: Which Option Is Right for Your Business?](https://blog.keyser.com/hubfs/AdobeStock_1481803663.jpeg) [Shell vs Turnkey Space: Which Option Is Right for Your Business?](https://blog.keyser.com/shell-vs-turnkey-space-which-option-is-right-for-your-business) September 04, 2025 ![How Executives Should Use AI in CRE](https://blog.keyser.com/hubfs/AI%20in%20CRE_3.png) [How Executives Should Use AI in CRE](https://blog.keyser.com/how-executives-should-use-ai-in-cre) September 04, 2025 [![](https://keyser.com/wp-content/uploads/2023/01/cropped-LogoBug-RGB.png)](https://keyser.com/) **Designated Broker **Jonathan Keyser **License Number **KEYSER, LLC LC646225000 [**Privacy Policy**](https://keyser.com/commercial-real-estate/privacy-policy/) SERVICES [**Commercial Real Estate**](https://keyser.com/commercial-real-estate/) [**Business Advisory Services**](https://keyser.com/business-advisory-services/) ABOUT US [**Our Team**](https://keyser.com/our-team/) [**Our Culture**](https://keyser.com/selfless-service-culture/) [**Join The Team**](https://keyser.com/join-the-movement/) RESOURCE CENTER [**Blog**](https://blog.keyser.com/) [**Featured In**](https://keyser.com/featured-in/) LOCATIONS **Keyser World Headquarters **6400 E. McDowell Rd, Ste. 100, Scottsdale, AZ 85257 CONTACT **Business Inquiries **(602) 953.9737 [info@keyser.com](mailto:info@keyser.com) **Press + Media Inquiries **Olivia Garrett [ogarrett@keyser.com](mailto:ogarrett@keyser.com) ###### ![JK-book_300_-1](https://blog.keyser.com/hs-fs/hubfs/JK-book_300_-1.png?width=126&height=126&name=JK-book_300_-1.png) JONATHAN KEYSER [**Book a Speaking Engagement or Purchase the Book**](https://jonathankeyser.com/ruthless-book/) --- ###### Copyright © 2023 Keyser, LLC. 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