Trbo’s May Market Report – Commercial Sluggish Recovery Continues

Craig Trbovich Commercial Real Estate –

As May closed and the stock market soared, commercial real estate activity in the Phoenix market moved at a uneventful pace, further exhibiting that the sluggish recovery continues.  The good news is that the real estate market continues to show positive absorption and the housing market is still on fire.  Retail continues to lead the commercial pack this year with a consistent April-May performance showing quarter-to-date net positive absorption over 1.0 million square feet, nearly triple that for the whole second quarter of 2012!  (For a great feature on Scottsdale Airpark’s Retail Market, go to the June issue of the Scottsdale Airpark News.)

Industrial activity has slowed but continues to be active with smaller users, showing that the bread and butter businesses are coming back and expanding.  There have also been a number of out-of-state companies looking for smaller spaces to expand into the Phoenix Market, another sign of the broad based economic improvement in Phoenix.  On the street, the office market is showing signs of a minor uptick in activity and I expect we will see the results of that in those numbers over the next few months.  The question is – will it last or is this another short spurt of activity?

Next month I will take a look at year-to-date numbers as we wrap up the first half of 2013. 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