The Phoenix retail market experienced a slight improvement in market conditions in the fourth quarter 2011.
The vacancy rate went from 12.5% in the previous quarter to 12.1% in the current quarter. Net absorption was positive 1,072,778 square feet, and vacant sublease space decreased by 21,801 square feet.
The largest lease signings occurring in 2011 included: the 55,175-square-foot-lease signed by Hobby Lobby at Chandler Gateway; the 55,000-square-foot-deal signed by Hobby Lobby at The Pavilions At Talking Stick; and the 46,100-square-foot-lease signed by Brass Armadillo Antiques at Palm Valley Cornerstone.
Quoted rental rates decreased from third quarter 2011 levels, ending at $14.74 per square foot per year.
A total of six retail buildings with 155,175 square feet of
retail space were delivered to the market in the quarter, with 215,844 square feet still under construction at the end of the quarter.
This trend is compared to the U.S. national retail vacancy rate, which decreased to 6.9% from the previous quarter, with net absorption positive 16.3 million square feet in the fourth quarter.
The information in this news report is based on CoStar’s Fourth Quarter 2011 Market Report, a 40+ page comprehensive research report available to CoStar subscribers. To learn more about quarterly research reports and other benefits available to CoStar subscribers, please call 888-226-7404.