by Strategic
- Rents Bottom Out
- Investment Sales Volume Up
- New Construction is Minimal
- Vacancy Expected to be 10% or less by end of the year
The Metro Phoenix retail market is continuing to improve with strong momentum continuing to build in leasing activity as well as investment sale transactions. Additionally, the trend in rental rates, which lag behind leasing and absorption activity, has also bottomed out and has turned positive. With minimal new construction in the pipeline, market fundamentals are favorable for strong continued momentum growth in leasing, absorption and rent growth.
Leasing Activity
In the second quarter of the year strong tenant leasing activity resulted in over 1,000,000 square feet of retail space being absorbed. This marks the ninth quarter in a row of positive leasing activity and further shows that the worst is well behind us. New leases with tenants such as RoomStore Furniture (120,000 SF), Blast Fitness (61,500 SF), Hobby Lobby (50,000 SF), AMC Theaters (37,600 SF), Michaels (30,000 SF), Golds Gym (30,000 SF), Big Lots (28,400 SF), multiple deals with Goodwill (12,000 – 25,000 SF), multiple new Fitness Center leases and Furniture Stores have all contributed to robust leasing activity in the marketplace.
