The metro Phoenix retail market is in expansion mode, but the pace is fairly slow, says a new report by Colliers International.
At 383,000 square-feet in the first quarter, net absorption continued modestly, as did vacancy, at 10.1 percent, 90 basis points lower than one year ago. The study says the rate is expected to go below 10 percent this year, after 25 quarters of being in double digits.
Shopping center sales slowed by 8 percent in the first quarter, with the median price decreasing to $90 per square-foot.
Employers are adding jobs at a healthy pace, but new home construction remains stagnant, and with limited housing starts, new retail development has remained in check, the study said.
Retailers with smaller footprints, such as restaurants and bars, saw the most expansion.
The east Valley and north Scottsdale saw the most retail activity.
To read the full report, click here.
