The Phoenix industrial sector remained steady this quarter with vacancy continuing to decline and net absorption remaining positive. The overall Phoenix vacancy rate fell slightly this quarter to 12.1%, down from 12.5 % posted at the mid-year point. This brings vacancy rates down almost a full percentage point compared to the same quarter in 2013 when the rate was 13.2%. The Southwest Valley posted the highest vacancy rate at 14.7%, while the Northwest Valley posted the lowest at 9.0%.
As the Metro Phoenix office sector approaches year end, market indicators continue to show slow but steady improvements. With vacancy rates continuing to decline and rental rates steadily increasing, 2014 has lived up to the predictions as a year of positive transition. With 599,262 SF delivered this quarter, the largest total delivery since the beginning of 2012, and over 2.4 million SF still under construction, the positivity continues as the sector ramps up for a busy 2015.
We are pleased to release a white paper authored by Dr. Peter Linneman, NAI’s Chief Economist. The topics covered by this paper, “Where Will U.S. Population Growth Occur? A Glimpse at 2020 and 2030”, include:
Is it is the growth that fuels U.S. real estate development? Why?
Why does the US still have tremendous growth potential due to pent-up demand?
Why do large cities tend to be attractive?
What is the single most important factor in determining future population growth?
Please click here to view and download Dr. Linneman’s recent white paper, “Where Will U.S. Population Growth Occur? A Glimpse at 2020 and 2030.”