Despite the steep stockmarket drop this week, deal closings remain strong across assetclasses. Multifamily sales dominated this week, providing evidencethat the asset class will be favored again in 2018. Some of thehighlights include a $27 million sale from TruAmerica in MorenoValley, the sale of a $45 million apartment building in Chatsworthand a $16 million apartment community in Phoenix. Fourth quarterreports also continued to trail in, showing a strong Phoenixmarket. The retail sector this week is being highlight, postinggains for the fourth quarter. Here's a look at this week's trends,announcements and deals that you may have missed in SouthernCalifornia, Utah, Arizona and Nevada.

BY THE NUMBERS

The fourth quarter of 2017 brought a spike in net absorption ofretail space in Greater Phoenix, bringing the total for the year tomore than 2.8 million square feet. This was the highest level ofnet absorption posted since 2007. Net absorption for fourth quarterexceeded 1 million square feet. A large portion of the absorptiontook place in high-income, fast-growing areas of the SoutheastValley area. Chandler and Gilbert combined to account forapproximately 20 percent of the total net absorption for GreaterPhoenix in 2017. Retail vacancy fell 50 basis points during thefourth quarter, ending the year at 8.4 percent. This is a decreaseof 90 basis points from year-end 2016. Retail vacancy in the WestValley dipped 40 basis points in 2017 to just six percent. This isdue in part to the growing economy in the West Valley, spurredpartially by the extension of the Loop 303 freeway. Increasedabsorption and falling vacancy rates have spurred a rise in rentalrates. Asking rental rates advanced 4.6 percent in 2017, finishingthe year at $14.64 per square foot. While rates had increased theprevious two years, rents rose at a steeper pace during 2017. TheEast Valley rental rates gained 5.8 percent in 2017, following a4.1 percent increase in 2016. The sale of shopping centers slowedduring 2017, down four percent from 2016 levels. Investment salesincreased during fourth quarter over third. The median price in2017 dipped below 2016, primarily because properties changing handsincluded more high-vacancy centers being sold as lease-upopportunities. The median price during 2017 was $114 per squarefoot, which represents a six percent decline from 2016. Cap ratesfeel slightly during fourth quarter, averaging seven percent. Theaverage cap rate for shopping center transactions throughout 2017was 7.4 percent, which is approximately 40 basis points higher thanthe 2016 average.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.