The Phoenix market has continued to soar and dominate the sales and leasing activity for the week. Multifamily is still the darling of the market, but industrial activity is also picking up. Additionally, a report from Colliers International shows that the retail market is also picking up, with record-breaking leasing activity and increasing property values. In Los Angeles, the retail rental rate growth declined in the third quarter. 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
PHOENIX—The retail sector in Greater Phoenix area hit its highest net absorption in several years and vacancy dropped to its lowest level in nearly a decade during the third quarter. Net absorption totaled more than 680,000 square feet, bringing the year-to- date net absorption figure to more than 1.6 million square feet. Vacancy dipped this past three months to 8.9%. This is the lowest vacancy rate in eight years. Home furnishing stores have stimulated net absorption in the market. Asking rental rates are up 3.2% to $14.53 per square foot for the past 12 months. Scottsdale continues to post some of the strongest rental rates. North Scottsdale rates have risen more than 6% this year and are approaching $20 per square foot. Sales of shopping centers slowed by 40%, but the median price rose more than 20% last quarter to $146 per square foot. The bulk of properties sold during third quarter were $10 million and less.