AZBEX.com
Speculative developments reducing impact of positive absorption gains
At least 13 development companies are capitalizing on the strong demand and limited supply of high-quality space in the Southeast Valley, delivering 558KSF of new product in the first half of 2015. While the remainder of the properties currently under construction are 74.5 percent pre-leased, the properties that have been delivered year-to-date have been mostly speculative, adding over 448KSF of vacant space to the market.
These speculative deliveries have kept pace with the 498KSF of year-to date net absorption, resulting in a stagnant vacancy rate of 22.3 percent in both the first and second quarter of 2015.
Strong activity along the eastern Loop 101 corridor
