The backslide is a direct result of companies postponing or foregoing real estate decisions and rising unemployment, says the research team. Unemployment rose 2.4% yet stayed well below the national average of 5.8%.
Some 1.7 million sf came on line in fourth quarter 2001 and another 1.9 million sf was under construction. At last count, vacancy had climbed to 16%.
Last year's biggest submarket losers were the Camelback Corridor, with a negative absorption of 413,108 sf; downtown north submarket, posting a negative 167,391 sf; and the Candler/Gilbert area, registering a negative 60,977 sf. Winners in the absorption game included the Scottsdale Airpark, gaining 501,849 sf; downtown south, up 394,391 sf ; and the South Tempe/Chandler area, posting 277,306 sf more than in the previous year.
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