Phoenix retail vacancy drops as leasing activity accelerates

By AZRE | Phoenix Business Journal

The first quarter of 2021 brought positive net absorption to the Greater Phoenix retail market, according to a report released today by Colliers in Arizona. Absorption pushed retail vacancy down and rental rates continue showing signs of growth.

The city lost significant jobs during the spring of 2020 as the pandemic unfolded, but many have been recovered. The retail trade supersector lost 29,000 jobs in April of last year and as of March 2021 approximately 99.6 percent of the lost jobs had been recovered. The leisure and hospitality sector, which lost 96,400 jobs, has only recovered 64.7 percent of its positions.

During the first three months of 2021 the city posted 246,897 square feet of net absorption.  This marks the highest level of net absorption since second quarter 2019.  The Northwest submarket cluster had the single largest move-in with Lifetime Fitness taking occupancy of 180,000 square feet.  Leasing activity increased 18 percent year-over-year.  The volume of new retail deals has increased 85 percent since the slowdown in second quarter 2020. 


Share this!

Additional Articles

Get Our Twice Weekly Newsletter!

* indicates required

Rose Law Group pc values “outrageous client service.” We pride ourselves on hyper-responsiveness to our clients’ needs and an extraordinary record of success in achieving our clients’ goals. We know we get results and our list of outstanding clients speaks to the quality of our work.

News Categories

Rents in Tucson area settle down

By Gabriela Rico | Arizona Daily Star Rents in the Tucson area are stabilizing after more than two years of significant spikes. In January, there was no measurable increase in average rental prices from

Read More »