Colliers International in Greater Phoenix released its 1Q report for retail in 2014. Read the highlights below. Link to full report at the end of the post.
- Net absorption in the Greater Phoenix retail market turned negative in the first quarter for the first time in three years. Negative net absorption was approximately 103,000 square feet. Still, the longer-term trend is for retailer expansion; net absorption over the past 12 months has totaled 2.7 million square feet.Tenant demand is typically weakest in the first quarter, as ,retailers often expand late in the year and then close under-performing stores after the holiday shopping season.
- Vacancy ended the first quarter at 10.8 percent, up from 10.7 percent at year-end 2013. Despite the recent uptick, the prevailing trend is for declining vacancy. The rate is down 80 basis points year over year.
- Shopping center transaction activity is gaining momentum, with sales velocity in the first quarter increasing 8 percent from fourth quarter levels and more than doubling the number of properties sold in the first quarter 2013.