PHOENIX-Give-backs, move-outs and a move away from spec development led to negative absorption and double-digit vacancy during the third quarter. One local real estate veteran points out that, with more space coming on line, absorption most likely will continue to slow for the near to medium term.

Figures released from Grubb & Ellis Co. show absorption slid 573,630 sf, pitching vacancy to 12.4%. The region’s total inventory is 266 million sf, with an additional 3.4 million sf under construction.

Cushman & Wakefield of Phoenix Inc.’s Q3 report paints a similar picture. Out of a total inventory of 267.3 million sf, the year-to-date negative direct net absorption was 635,062 sf, putting vacancy at 10.4%. Year to date, overall net absorption was 1.3 million sf. C&W logged 3.9 million sf as being under construction.

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