"Users are slowly returning to the marketplace," Tony Lydon, senior vice president with Grubb & Ellis/BRE Commercial, tells GlobeSt.com. "Over the last 2 1/2 to three years, it's been a long haul, but we're now starting to see tangible signs of recovery with the small to mid-size community."
The Grubb & Ellis-commissioned study found industrial vacancies in the Valley dropped to 11.1% from the 11.6% posted in the first quarter, reflecting a decline in vacancies in seven of 10 Phoenix submarkets. Glendale remained the healthiest submarket with a vacancy rate of 4.6% while West Central Phoenix saw the greatest decline with a 1.8% drop in vacancies. Southwest Phoenix, which has historically had the highest vacancy rate in the Valley, continued to retain that position with a vacancy rate of 16.8%.
Throughout the Valley, net absorption continued its climb upward with a positive net absorption of 2.3 million sf, bringing year-to-date absorption levels into the positive range, with the West Central submarket absorbing the most at 579,000 sf.
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