Cassidy Turley releases Q2 ‘Market Snapshots’
Cassidy Turley has released its Q2 market snapshots for Phoenix.
The brokerage firm reported the following market trends: “The metro Phoenix economy continues to post positive gains, adding 24,000 net new jobs year-over-year through the second quarter 2014 with a total employment base of 1,830,000 jobs. Moody’s recently raised its employment forecast for year end 2014 and now expects 40,600 net new jobs this year, compared to 38,600 net new jobs originally forecasted at the beginning of the year. As employment levels rise, the metro Phoenix unemployment rate improved year-over-year, declining 110 basis points to 5.9%. The metro Phoenix unemployment rate continues to outperform the national unemployment rate of 6.1%.”
Highlights: Office vacancy has dropped below 20%, a first since 2008. At the end of Q2, 2.18MSF of office property was under construction. Four new projects broke ground, three of which were speculative construction (Chandler 202, Hayden Ferry III and Chandler Corporate Center).
Quick Hit: By the end of Q2, nearly 3MSF of industrial property was under construction. During the quarter, 10 new projects broke ground (half of which were build-to-suit).
Highlights: At Home and Hobby Town’s occupation in the northwest Phoenix submarket contributed significantly to 460,845 SF of positive net absorption in Q2. Vacancy declined 10 basis points, finishing the quarter at 12.1%. Year-end net absorption is expected to be 2.5MSF and vacancy to drop below 12 percent, which hasn’t happened since 2009.