Retail Vacancy Rates Up Slightly at Year-end

PHOENIX-The retail vacancy rate increased more than a half percentage point during the last quarter of the year, but market analysts don’t see it as a sign of widespread softness.

The vacancy rate for retail space in the Valley, including regional malls, at the end of 2000 was 5.25%, according to a new survey by CB Richard Ellis. The rate was up from 4.5% at the end of the third quarter.

The slight increase in the vacancy rate is mostly attributable to new space that was brought to market during the fourth quarter, says Judi Butterworth, first VP in the retail division of CB Richard Ellis. While most projects were heavily pre-leased, not all new space was filled at opening.