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Q4 2013 – NAI Horizon Office Market Report

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After a slow first half in the Phoenix office sector, the second half of 2013 showed signs of improvement and brightened the outlook for 2014. The year ended with 1.6 million SF being absorbed, with almost all of those transactions occurring in the second half. Rental rates and vacancy continued to improve throughout the year, with rental rates peaking at $20.42/FS, the highest rate seen since 2011, and vacancy rates constricting to 19.4%, down from 20.6% at the end of 2012. These indicators point to a sector in the beginning stages of recovery, and should see slow but steady improvements in 2014 and more dramatic changes in 2015.

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Q3 2013 – NAI Horizon Multifamily Market Report

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Recovery has been tracked on a nationwide scale as well. The six major metro areas have averaged a price recovery of 90% of peak compared to non-major metro areas averaging a 75% recovery. Of these six major metro areas, two have met previous peak-price levels, compared to just three among the remaining non-major metros nationwide, including Dallas, Houston, and Austin. Increased purchasing activity was also recorded across all property types in the U.S. as of August, with a recent influx of institutional and private buyers for retail properties causing prices to rise faster for the retail sector than others. Conversely, the multifamily sector has experienced a slowing of price gains after consistently leading the other sectors, potentially due to the slowing of the recent rush to rent by those hit in the housing downfall. Sales of significant commercial property nationwide totaled $24 billion in August, up 12% year-over-year.

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Q3 2013 – NAI Horizon Retail Market Report

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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.