Craig Trbovich Commercial Real Estate –
Positive absorption was the trend for February in the Phoenix Office, Flex and Warehouse markets, based on CoStar Analytics. All three product types experienced an increase in absorption with the warehouse market moving below the 10% vacancy mark for the first time since the recovery began.
The Office market rebounded from a sluggish January, in spite of increased asking rates, but is still experiencing significant vacancy. And the Industrial market has continued its steady improvement, with aggressive lease rates offering great opportunities for tenants and investors. However, aggressive rates are not expected to last as vacancies continue to decline, so now is a good time for tenants to lock in those rates and for investors to consider properties with shorter term leases providing upside potential to renew and release at higher rates as the market improves.
Next month, I’ll take a closer look at investment sales for the first quarter and discuss emerging trends. For a no obligation analysis of your property, please call me at (408) 522-2799 to “TrboCharge” your investment real estate today.
Phoenix Office
|
Feb 2013 |
Jan 2013 |
2012 Yr End |
|
| Lease vacancy rate |
19.4% |
19.6% |
19.4% |
| Lease SF net absorption |
217,026 |
-385,422 |
1,610,615 |
| Average lease rate (full service) |
$21.20 |
$20.44 |
$19.95 |
Phoenix Industrial
|
FLEX PROPERTIES |
Feb 2013 |
Jan 2013 |
2012 Yr End |
| Lease vacancy rate (flex) |
20.0% |
20.3% |
20.5% |
| Lease SF net absorption (flex) |
127,368 |
24,891 |
13,437 |
| Average lease rate (net) |
$10.24 |
$10.59 |
$10.59 |
|
WAREHOUSE PROPERTIES |
|
|
|
| Lease vacancy rate (warehouse) |
9.9% |
10.1 |
11.4% |
| Lease SF net absorption (warehouse) |
331,976 |
1,444,369 |
2,143,152 |
| Average lease rate (net) |
$5.45 |
$5.54 |
$5.45 |