PHX Retail Net Absorption Strong on New Deliveries

Credit: AZ Big Media

CBRE’s recent Q2 2021 Phoenix Retail Report shows retail vacancy dropped to 7.7 percent. Pre-leased construction projects fueled the drop from 8.0 percent in Q1. For reference, the three-year average vacancy is 8.1 percent. 

The current pipeline shows 278.5KSF under construction, largely led by neighborhood and fitness center projects.  

Both gross and net absorption improved in Q2. Gross activity was nearly 872KSF, while net absorption was more than 489KSF. 

Triple-net lease rates increased to $17.86/SF, up 10 percent quarter-over-quarter and 5.4 percent year-over-year. (Source

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