"In a market like this if you're representing an owner, you'reencouraging short-term deals and encouraging them not to spend alot of money in terms of tenant improvements," says ThomasJohnston, senior managing director and branch manager with Cushman& Wakefield of Arizona Inc. "Conversely, if you're representinga tenant, you're encouraging that person to do long-term leases,more concessions from the landlord, more TI dollars and a lowerrent."
C&W's midyear statistics show overall vacancy at 17.2% inthe 70.6-million-sf inventory. At this time last year, vacancystood at 14.8%. Net absorption for the Q2 '08 stood at 61,583sf.
Grubb & Ellis' Q2 report shows a similar story: vacancy at18.6% in a 63.3-million-sf inventory and net absorption of 27,414sf. Year to date, net absorption is in the red by 178,795 sf.
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