Middle Market Digest: This Week in Southwest

The Southwest market posted another strong week with employment news taking center stage, a sign of continued growth in the market. Phoenix—no surprise—continued to be a leader with growth in each asset class. Here’s a look at this week’s trends, announcements and deals that you may have missed in Southern California, Utah, Arizona and Nevada.

BY THE NUMBERS

The Phoenix market posted a strong second quarter across asset classes. The office, industrial, retail and multifamily markets ended the quarter with a decrease in vacancy rates and an increase in rental rates. The office direct vacancy level of 13.28% marks the lowest vacancy recorded since the first quarter in 2008. Submarkets with the least vacant space include North Phoenix/Cave Creek at 5.0%, Tempe at 6.4%, and Mesa Downtown at 6.5%. Industrial vacancy rates hit an all-time low of 7.2%, a notable dip of over 14% from second quarter of last year which posted at 8.4%. The multifamily vacancy rate fell below 6% with average rental rates hitting $1,000 per unit on average. Retail vacancy now hovers just above 6% with rental rates above $15 per square foot.