What's Hot

    Tempe DRC Recommends Approval for 72-Unit Live-Work Development

    September 12, 2025

    Input Prices Up 0.2% in August

    September 12, 2025

    Arizona Projects 09-12-25

    September 12, 2025
    Facebook Twitter Instagram
    AZBEX
    NEWS TICKER
    • [September 12, 2025] - Tempe DRC Recommends Approval for 72-Unit Live-Work Development
    • [September 12, 2025] - Input Prices Up 0.2% in August
    • [September 12, 2025] - Arizona Projects 09-12-25
    • [September 10, 2025] - Goodyear Seeking Developer for Ballpark Village Mixed-Use
    • [September 9, 2025] - Opus Group Planning 300KSF Industrial Park Near Sky Harbor
    • [September 9, 2025] - Multifamily Development Planned in Tucson’s Miracle Mile
    • [September 9, 2025] - Construction Employment Down for Third Straight Month
    • [September 9, 2025] - Industry Professionals 09-09-25
    Facebook Twitter YouTube LinkedIn
    • Home
    • News
      1. View Latest
      2. ✎ Planning & Development
      3. 📰 Local News
      4. 🔎︎ Classifieds
      5. 🕵 Editorial Analysis
      6. 💰 Budgets & Funding
      7. 🏢 Commercial Real Estate
      8. 👔 People on the Move
      9. 🌵 Arizona Projects
      10. 🏛️ Legislation & Regulations
      11. 📈 Trends

      Tempe DRC Recommends Approval for 72-Unit Live-Work Development

      September 12, 2025

      Goodyear Seeking Developer for Ballpark Village Mixed-Use

      September 10, 2025

      Opus Group Planning 300KSF Industrial Park Near Sky Harbor

      September 9, 2025

      Multifamily Development Planned in Tucson’s Miracle Mile

      September 9, 2025

      HonorHealth to Build on Former Amkor Site in Vistancia

      September 2, 2025

      Buckeye City Council Discusses Annexing Land for Community Master Plan

      August 29, 2025

      Round 3 of BuildItAZ Grants Announced

      August 26, 2025

      Magazine Tackles Construction Crisis by Inspiring Teen Girls to Enter Skilled Trades

      August 22, 2025

      Scottsdale Hospitals War May Heat Up with New Banner Request

      July 29, 2025

      Glendale Voters to Determine VAI Resort’s Fate

      May 16, 2025

      Legislation Would Effectively Strip NIMBYs of Referendum Tool

      February 11, 2025

      2025 Forecast Tries to Clarify an Uncertain Market

      February 7, 2025

      RTA Funding Proposal Stirs Controversy

      August 15, 2025

      Ariz. LIHTC to Sunset Under New Budget

      July 8, 2025

      State Government Shutdown Averted as Hobbs Signs Budget

      July 1, 2025

      Arterial Life Cycle Program Covers 20 Years of Street Development

      June 27, 2025

      Commercial Real Estate 09-09-25

      September 9, 2025

      Commercial Real Estate 09-02-25

      September 2, 2025

      Commercial Real Estate 08-26-25

      August 26, 2025

      Commercial Real Estate 08-19-25

      August 19, 2025

      Industry Professionals 09-09-25

      September 9, 2025

      Industry Professionals 09-02-25

      September 2, 2025

      Industry Professionals 08-26-25

      August 26, 2025

      Industry Professionals 08-19-25

      August 19, 2025

      Arizona Projects 09-12-25

      September 12, 2025

      Arizona Projects 09-05-25

      September 5, 2025

      Arizona Projects 08-29-25

      August 29, 2025

      Arizona Projects 08-22-25

      August 22, 2025

      Environmentalists Sue ADWR Over Benson-Area Developments

      September 2, 2025

      Pima County Latest to Amend Zoning for Data Centers

      August 22, 2025

      Tucson City Council Likely to Approve Water Restriction on Large

      August 19, 2025

      Ritz-Carlton Paradise Valley Fight Could End in Foreclosure

      August 15, 2025

      Input Prices Up 0.2% in August

      September 12, 2025

      Construction Employment Down for Third Straight Month

      September 9, 2025

      Construction Job Openings Up 77,000 YoY

      September 5, 2025

      Ariz. Construction Lost 400 Jobs in July

      August 19, 2025

      Tempe DRC Recommends Approval for 72-Unit Live-Work Development

      September 12, 2025

      Input Prices Up 0.2% in August

      September 12, 2025

      Arizona Projects 09-12-25

      September 12, 2025

      Goodyear Seeking Developer for Ballpark Village Mixed-Use

      September 10, 2025
    • AZBEX
      • Subscribe
      • Solicitations
      • Classifieds
      • Advertising
    • DATABEX
      • DATABEX Log-In
      • Webinars
      • Monthly Snapshot
    • Events
      • 2025 Hospitality LMS
      • 2025 Public Works Conference
    • About Us
      • Meet the Company
      • Meet the Sales Team
      • Meet the Editorial Team
      • Meet the BEXperts
    • CIP Special Report
    AZBEX
    Home » Local News » 3 Major CRE Sectors Show Continued Strength
    Local News

    3 Major CRE Sectors Show Continued Strength

    BEX StaffBy BEX StaffJanuary 30, 2018No Comments2 Mins Read
    Courtesy of Cushman & Wakefield
    Share
    Facebook Twitter LinkedIn Pinterest Email

    By Roland Murphy for Arizona Builder’s Exchange

    Cushman & Wakefield last week issued their Q4 2017 Metro Phoenix MarketBeat reports for Industrial, Office and Retail, noting high degrees of activity across all three sectors.

    Industrial

    Industrial posted an overall vacancy rate of 7.9 percent for the quarter. Twelve of the 17 submarkets showed positive absorption for the quarter and the year as a whole. Only Tempe had more than 100KSF of negative absorption for the year.

    Southwest Phoenix had the highest occupancy growth for the year at 8 percent.

    In Q4, Metro Phoenix absorbed a total of 2.74MSF, with distribution space experiencing the highest gain: 1.95MSF for the quarter and 6.59MSF for the year.

    A total of 1.46MSF was delivered in Q4, 76.2 percent of which was preleased.

    Office

    The Q4 Office vacancy rate was 16.6 percent, tying with Q2 2008 for what Cushman & Wakefield calls the lowest post-Recession rate. For reference, Q1 2012 had the highest Recession vacancy rate at 24.6 percent.

    “Q4 2017 showed positive absorption, boosted by the strength of Class B (+447KSF) and Class C (+161KSF) absorption and dragged down by Class A (-225KSF) negative absorption,” the report states. “For the year, 2017 had positive absorption across all three classes. Class A space absorbed 324KSF, Class B space absorbed 848KSF and Class C absorbed 207KSF for a total of 1.379MSF positive absorption.”

    Fifteen of the 22 office submarkets saw positive absorption in Q4. These were led by South Scottsdale, which absorbed 119KSF. Henkel’s departure and vacating of 288KSF was the primary reason the Scottsdale Airpark submarket experienced the most negative absorption of any area.

    Retail

    Surprisingly, for all the doom and coverage the sector receives, Retail ended the year in good shape, absorbing more than 1MSF over Q4 and 2.15MSF over the whole of 2017. Neighborhood and community centers absorbed nearly 742KSF. Strip centers absorbed 258KSF, and power & regional malls absorbed 38.9KSF. The only losing segment was lifestyle centers, which was negative nearly 13.9KSF.

    Overall, vacancy dropped to 9.8 percent in Q4, down from 10.5 in Q3.

    Cushman & Wakefield was tracking 632KSF in retail construction at the end of the year, led by the San Tan Pavilions project in the Southeast Valley at 193KSF.

    absorption rate Cushman & Wakefield Industrial market report Marketbeat office vacancy rate
    Share. Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Tumblr Email

    Related Posts

    Input Prices Up 0.2% in August

    September 12, 2025

    Opus Group Planning 300KSF Industrial Park Near Sky Harbor

    September 9, 2025

    Construction Employment Down for Third Straight Month

    September 9, 2025

    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    Our Picks

    Tempe DRC Recommends Approval for 72-Unit Live-Work Development

    September 12, 2025

    Input Prices Up 0.2% in August

    September 12, 2025

    Arizona Projects 09-12-25

    September 12, 2025

    Goodyear Seeking Developer for Ballpark Village Mixed-Use

    September 10, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • LinkedIn
    • YouTube
    Don't Miss
    Planning & Development

    Tempe DRC Recommends Approval for 72-Unit Live-Work Development

    September 12, 20250

    By Roland Murphy for AZBEX The Tempe Development Review Commission earlier this week recommended approval…

    Input Prices Up 0.2% in August

    September 12, 2025

    Arizona Projects 09-12-25

    September 12, 2025

    Goodyear Seeking Developer for Ballpark Village Mixed-Use

    September 10, 2025

    BEX serves architecture, engineering and construction firms as well as all the ancillary product and service categories that market to them. These include manufacturing representatives, public agencies and private real estate organizations, specialty subcontractors and services providers related to our industry.

    Our Picks

    Tempe DRC Recommends Approval for 72-Unit Live-Work Development

    September 12, 2025

    Input Prices Up 0.2% in August

    September 12, 2025

    Arizona Projects 09-12-25

    September 12, 2025
    Contact Us

    Phone: 480-709-4190
    Address: P.O. Box 12196 Tempe, AZ 85284
    Email: sales@azbex.com

    Type above and press Enter to search. Press Esc to cancel.