Phoenix Area Retail Vacancy Increased in Q4

Credit: CBRE

Retail vacancies increased to 8.0 percent in the Phoenix area at the end of Q4, according to a recently released market report from CBRE. While the market continues to tighten, year-over-year vacancy was steady.

New construction totaled a modest 686KSF, led mostly by grocery-anchored development and fitness outlets.

Net absorption was -106KSF, bringing the two-year average to 149.4KSF. Q4’s gross activity was 602.7KSF, and both gross and net absorption showed improvement over Q3.

Shutdowns and move-outs by Stein Mart and Office Max locations around the Valley contributed strongly to the market negatives, while the opening of a 154.4KSF Costco in the Sun City submarket was a positive highlight.

For the year in total, negative net absorption in Metro Phoenix totaled 13.3KSF. (Source)

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