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Market Trend: Phoenix's Retail Vacancy Decreases to 12.1%

Net Absorption Positive 491,601 SF in the Quarter
May 29, 2012
The Phoenix retail market did not experience much change in market conditions in the first quarter 2012.

The vacancy rate went from 12.2% in the previous quarter to 12.1% in the current quarter. Net absorption was positive 491,601 square feet, and vacant sublease space increased by 1,107 square feet.

Quoted rental rates decreased from fourth quarter 2011 levels, ending at $14.67 per square foot per year.

A total of eight retail buildings with 114,839 square feet of retail space were delivered to the market in the quarter, with 609,341 square feet still under construction at the end of the quarter.

This trend is compared to the U.S. national retail vacancy rate, which stayed at 6.9% from the previous quarter, with net absorption positive 9.53 million square feet in the first quarter.

The information in this news report is based on CoStar’s First Quarter 2012 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.

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