The area's retail vacancy rate was just under 4.6% at the startof the third quarter, more than one-half a percentage point lowerthan at the start of the year and almost one full point below thefourth quarter of 1999, according to some new brokeragereports.

"The retail market in the Phoenix metro area is verystrong,"Darren Pitts, a senior associate at the local office of CBRichardEllis, tells GlobeSt.com. "We are seeing retailers who haveneverhad a presence here opening new shops, while a lot ofcompanies that already have a presence are looking for places toexpand."

Recent examples include Lowe's Home Improvement,which opened itsfirst store in the Phoenix area earlier this year but plans sevenlocations by mid-2001; UltimateElectronics, which opened its firstof two stores thismonth; and Gateway Country Stores, which hasopenedseveral stores in the city this year and plans to open evenmore.