By AZ Big Media
The Greater Phoenix retail market vacancy level hit a historic low 4.8 percent at the end of June, reflecting strong tenant demand in one of the nation’s fastest-growing cities, according to a report released by Colliers in Arizona. Data from Affinity Solutions indicates Phoenix has experienced a 16.5 percent increase in all consumer spending since January 2020.
During second quarter, retail vacancy fell 40 basis points, which was a 130 basis point decrease year-over-year. This marked the 12th consecutive quarter that vacancy has decreased. Eight out of nine geographic submarkets in the city posted retail vacancy decreases year-over-year. Downtown was the only submarket with a rise in vacancy. The lowest vacancy is found in the West Valley, falling to just 1.8 percent during second quarter. Scottsdale posted the second lowest vacancy at just 3.6 percent.
Net absorption of retail space during second quarter totaled 717,262 square feet, bringing the year-to-date total to 1.9 milion. Net absorption at the mid-year point reached 80 percent of the total net absorption posted in all of 2022. The market is less than 500,0000 square feet from topping last year’s absorption level. New deals larger than 10,000 square feet rose 17 percent from first quarter and were up 22 percent year-over-year. The largest new lease signed during second quarter was PickleMall’s commitment to 104,000 square feet at Arizona Mills Mall. The second largest lease involved behavioral health group Village Mentors signing a lease for 31,550 square feet at Alta Mesa Village near Brown and Recker roads in Mesa.
