• Phoenix retail metrics remained stable through mid-year 2018. Minor setbacks in the form of big-box moveouts hindered further growth, though gross leasing activity remained strong and is set to meet recent annual levels.
  • It is important to note some of the factors that are fueling demand for retail space in the Valley. Two of the most important demand-side drivers for retail space include population and employment growth—and Phoenix is among the fastest growing metros nationally for both indicators.
  • In Q2 2018, the marketwide vacancy rate declined 10 basis points (bps) year-over-year and remained flat quarter-over-quarter, settling at 8.4%.
  • The Phoenix retail market’s average asking lease rate reached a decade high in Q2 2018, settling at $17.96 per sq. ft. (NNN).
  • Retail market fundamentals were stable in Q2 2018, despite numerous big-box moveouts across the Valley. Nearly 350,000 sq. ft. of big-box space
    was absorbed and new supply remained heavily preleased.