Q2 2021 Retail Market
- Vacancy decreased 20 basis points quarter-over-quarter
- Year-to-date net absorption is 496,542 square feet, more than double all of 2020's amount
- Investment sales reached $350.5 million in the second quarter, 19% higher than the first 6 months of 2020
There was 249,645 square feet of positive absorption followed by a slight increase in rental rates.
Investment sales this quarter were higher than all of 2020, ending at $350.5 million.
Rental rates continued showing positive growth, rising 1.98 percent year-over-year ending at $14.90 per square foot.
Construction continued forward during second quarter as the market delivered 188,470 square feet of new space within three projects and posted another 382,505 square feet underway.
Investment sales in the retail market improved during second quarter with transactions totaling $350 million, bringing year-to-date sales volume to $636 million.
The median price paid per square foot percent landed at $222.
Outlook: Pent-up demand resulted in a retail spending increase of 25 percent compared to January 2020. Phoenix maintains its top metro position for net migration for the 3rd consecutive year from July 2019-2020, so our market is witnessing more and more demand for retail outlets entering the area. Development in suburban areas make up more than 80 percent of construction as developers actively work to keep up with the strong growth.