The metro Phoenix retail vacancy declined to 7.8% at the end of Q1 2020, a decline 60 basis points, when compared to Q1 2018 when the vacancy rate was 8.4%.
In Q1 2020, the retail market absorbed 301,161 sq. ft. which exceed the two-year average of 200,913 sq. ft.
The retail market continues to tighten as new construction remains disciplined with 525,096 sq. ft. of product currently under construction.
Construction is led by grocery and fitness anchored developments with Fry’s, Sprouts, Life Time Fitness and Planet Fitness being active in the market.
Just over 130,000 sq. ft of retail space was completed in Q1 2020 across metro Phoenix.
Notable completions in the quarter included the opening of an 80,000 sq. ft. Life Time Fitness at Biltmore Fashion Park in the Camelback Corridor and the opening of a 30,000 sq. ft. Sprouts Farmers Market in Cave Creek.