Steady population and job growth support consumer spending, which will attract retailers and boost demand for space through the end of the year.
Phoenix retail metrics stabilized through Q2 2019. Big-box retailers, dominated by fitness, were especially active in 2018 and this trend continued into Q2 2019 with fitness leading the leasing activity across the Valley.
The market-wide vacancy rate decreased 20 basis points (bps) quarter over quarter to 8.1%. One year ago, the market-wide vacancy rate was 8.4%.
Net absorption in the second quarter totaled 284,613 sq. ft. and gross absorption totaled 1,081,994 sq. ft.
The overall average asking lease rate was $16.80 per sq. ft. (NNN) at the end of Q2 2019.