Intelligence

Regional Summaries

Select a state to view available market snapshots

Phoenix, AZ

Apartment
Vacancy in the Phoenix area apartment market has been at or below 5.0% since the first quarter of 2014—a decisive recovery from the 12.0%-plus peaks reached in 2009. The rate for the fourth quarter of 2015 was 4.8%, same as a quarter earlier and unchanged overall since year-end 2014. Strong rent growth in 2013 and 2014 was followed by even stronger growth in 2015. At $878 and $808 per month, fourth quarter asking and effective averages were up fully 5.4% each for the year following gains of 3.6% and 3.8% the year before. VIEW APARTMENT LISTINGS >
Industrial
Reis reports a fourth quarter 2015 vacancy rate of 16.1%, a decline by 40 basis points for the period, and a loss of 80 for the year for the 135.6-million-square-foot Phoenix warehouse/distribution space market. No change had occurred by the end of January. At $5.61 psf and $5.11 psf, fourth quarter average asking and effective rates represented gains of 1.8% and 2.0% for the year. Gains for the final quarter alone were 0.7% and 0.8%, the year’s best performance. January, meanwhile, brought no additional changes. The 30.7-million-square-foot Flex/R&D market reports a fourth quarter vacancy rate of 20.6%, a decline by 70 basis points for both the period and the year. An additional 10 points had been subtracted by the end of January 2016. At $10.47 psf and $9.30 psf, fourth quarter average asking and effective lease rates were up 1.6% and 1.9% for the year. Gains for the final quarter alone were 0.7% and 0.9%. January posted respective increases of 0.2% and 0.1%. VIEW INDUSTRIAL LISTINGS >
Office
The Phoenix area general purpose, multi-tenant office market posted a fourth quarter 2015 overall vacancy rate of 24.8%, a decline by 70 basis points for the period, and a loss of 60 for the year. In January, meanwhile, the rate added back 10 basis points. At $23.90 psf and $18.58 psf, mean average asking and effective rates for the fourth quarter of 2015 were up 2.8% and 2.9% for the year. Gains for the fourth quarter alone were 1.0% and 1.1%. VIEW OFFICE LISTINGS >
Retail
The slow descent in the Phoenix community-neighborhood shopping center market vacancy rate under way since 2011 came to an end in 2015 as net absorption turned moderately negative. The related increases in the rate, however, were modest. Vacancy ended 2015 at 10.5%, up 30 basis points for the year but down 10 during the final quarter alone. Data for January show a 20-basis-points decline. At $19.74 psf and $16.91 psf, mean asking and effective rates for the fourth quarter represented modest respective gains of 1.6% and 1.7% for the year. Growth rates for the fourth quarter alone were 0.3% and 0.4%. A one-cent increase in the mean asking price is reported for January (the effective rate showed no change for the month). VIEW RETAIL LISTINGS >

Source: Data provided by Reis, inc.

White Papers

 

     

Additional Resources