Big-box users were particularly active in Q3 2018, absorbing more than 550,000 sq. ft. of space. However, this was offset by recent big box move-outs including Sears, K-Mart, Sam’s Club, and Toys “R” Us.
The Phoenix retail market recorded 259,915 sq. ft. of net absorption in the third quarter. Year-to-date, net absorption was 147,471 sq. ft.
In Q3 2018, the marketwide vacancy rate edged up 10 basis points over the last 12 months to 8.4%.
The Phoenix retail market’s average asking lease rate settled at $17.95 per sq. ft. (NNN) at the end of Q3 2018.