Q3 2013 – NAI Horizon Retail Market Report

The retail market continues to show signs of improvement on its long road to recovery. Vacancy continued to fall this quarter to the lowest it has been since the beginning of 2009, coming in at 10.6%. Just one year ago, the retail vacancy rate for the Phoenix Metro market sat at 12%, with the highest rate, 13%, in 2011. Demand for retail space continued to improve as well, 1.2 million SF of space was absorbed in the Valley. The East Valley submarket cluster made up more than 60% of that total with 818,444 SF absorbed. As the fourth quarter historically records as the strongest quarter for retail, 2013 has the potential to be the strongest year, in terms of net absorption, that the valley has seen since 2008. Already this year space absorbed has surpassed the 2012 value by almost 200,000 SF, with a strong fourth quarter still to come.

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