By RED News Service
The Greater Phoenix medical office market started out the year slow with negative net absorption of nearly 50,000-square-feet in the first three months. Fundamentals in the market remain strong and a report by Colliers International in Greater Phoenix predicts improvement in upcoming months. To view the entire report, click HERE.
The negative net absorption experienced in the first three months of 2017 drove the vacancy rate up to 16 percent from 15.7 percent at year-end 2016. The bulk of the increase was recorded in the Arrowhead/Surprise submarket. Vacancy has been declining over the past several years and currently is 10 basis points lower than one year ago. Vacancy in on-campus buildings remained steady at 17.9 percent. The bulk of market inventory is found in off-campus medical properties and that vacancy rose for the first time in nearly two years.