CB Richard Ellis, which tracks a smaller amount of office spacein the market than Applied Analysis—approximately 36.1 millionsf—shows overall office vacancy at 15.9% as of the end of June.Within that total is 4.8 million sf of class A space that it foundto be 14.33% vacant.

While new construction and business contractions related to theresidential market are overwhelming the pace of leasing, CharlesMoore, a local senior vice president with CBRE tells GlobeSt.comthat he expects to see a lot more investment activity in the thirdand fourth quarters because sellers are beginning to adjust theircap rate expectations, narrowing the bid-ask gap.

One example is Centennial Corporate Center, an office-retaildevelopment adjacent to Painted Desert Golf Course that includes125,952 sf of class A office space, a three-story parking garageand 17,000 sf of service retail completed in 2006. It hit themarket several months ago at $54.6 million; today, it can be hadfor $45 million, not including the $2 million or so that will needto be spent on tenant improvements for the remaining vacantspace.

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