Trbo’s April Phoenix Market Report – Retail Returning?

 Craig Trbovich Commercial Real Estate –

The April commercial activity results are in for the Phoenix Market and Retail is had a strong showing.  Net absorption for April was a strong positive 540,323 square feet in the Retail sector as shown in the table below.  And 2013 year-to-date gross absorption (4,247,412 sf) is on a pace to exceed 2012 totals by 50%!  It will be interesting to see if this trend in Retail continues and if 2013 will be the year that retail returns.

Office is shrugging off a sluggish start to 2013 and keeping at a slow and steady pace.  And with recent employment numbers continuing to improve, I expect office will remain on the same track for the foreseeable future, with significant improvements not likely until 2014 or 2015.

Vacancy in the Industrial market has continued to remain low, showing a positive net absorption in April, with new large distribution product entering the market increasing vacancy slightly in March.  However, monthly fluctuations in absorption may occur as these large spaces enter the market and are then absorbed.  The Phoenix Industrial market remains active and strong across most types and sizes.    I also expect to see lease rates starting to climb in future months as smaller spaces are also being absorbed across the valley.

Overall, lease rates remain near market cycle lows, but concessions in the market are becoming less aggressive as activity continues to increase and vacancy rates steadily decrease.  Would you like to know what your property is worth in today’s market?  For a no obligation analysis, please call me at (408) 522-2799 and “TrboCharge” your investment real estate today.

Phoenix Retail

Phoenix Office

Phoenix Industrial

Data Source: CoStar Group, Inc.