not see that commercial RE is down in the dumps
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Retail vacancies hit 11.9%, big box vacancies soar
Phoenix Business Journal
The amount of empty retail space continues to rise in the Phoenix area with vacancy rates hitting 11.9 percent in the first quarter and negative absorption of 398,760 square feet.
This is the sixth consecutive quarter marking the loss of more occupied space compared with gains, according to CB Richard Ellis MarketView report. The vacancy rate, up from 11.4 percent in the fourth quarter, compares with 9.7 percent a year ago and 6.5 percent two years ago.
The report also cites concerns with the availability of so much big-box space. At the end of the quarter 299 empty spaces greater than 10,000 square feet accounting for 8.4 million feet. That’s up from 132 spaces and 3.9 million feet a year ago, according to CBRE. Total vacant space at the end of the quarter was 17.6 million square feet.
“At some point, consumers and businesses will return to a much different market,” the report said. “For now, it is a question of when and how strongly they re-enter the market.”
Meanwhile, rental rates continue to dive with the average asking lease rate ending the quarter at $16.61 per square foot, down from $18.54 a year ago and $22.74 two years ago.
The Chandler-Mesa-Gilbert area had the highest percentage of vacancies at 14.5 percent. Maricopa at 4.1 percent and Scottsdale at 6.9 had the lowest rates.
http://www.bizjournals.com/
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