Colliers Int'l Greater Phoenix Q1 2017 Research Reports + Analysis

Commercial Real Estate Research | Greater Phoenix

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Investment Market Report | Greater Phoenix  

Q1 | 2017 | Greater Phoenix | Investment Market Report   

In general, sales of commercial properties slowed in the first quarter of 2017. Although transaction activity for office and medical office buildings decelerated and shopping centers remained flat, activity continued to tick higher in industrial properties. Prices ticked down in the first quarter and were largely influenced by the mix of assets that traded hands. The only segment that recorded a slight uptick in prices was industrial

Industrial Market Report | Greater Phoenix  

Q1 | 2017 | Greater Phoenix | Industrial Market Report

Strong Absorption Drives Down Vacancy to Start 2017. The vacancy rate for Greater Phoenix industrial properties fell below 10 percent in the first quarter, dipping to 9.8 percent. This was the lowest vacancy rate in the market in nearly a decade. Net absorption topped 2 million square feet in the first quarter. Developers are active, completing nearly 1.8 million square feet in the first quarter. Following strong activity late last year, sales of industrial buildings rose another 5 percent in the first quarter of 2017.

Office Market Report | Greater Phoenix  

Q1 | 2017 | Greater Phoenix | Office Market Report

Vacancy Inches Higher, Despite Continued Absorption. The Greater Phoenix office market opened 2017 on a bit of a mixed note, with vacancy rising in response to an upswing in new development. While outpaced by new development, net absorption was positive and rents continued to rise. Vacancy ticked up to 16.5 percent in the first quarter, 30 basis points higher than at the end of 2016. Despite the rise over the past three months, vacancy in Greater Phoenix is down 70 basis points in the past year.

Multifamily Market Reports | Greater Phoenix and Tucson  

Q1 | 2017 | Greater Phoenix | Multifamily Market Report

Strong Renter Demand Drives Vacancy Lower. The Greater Phoenix multifamily market posted a strong start to 2017. Rents continued to push higher, vacancy inched lower and sales velocity continued at a healthy pace. These trends are setting the stage for a strong 2017 in the local multifamily market. Vacancy inched down to 5.6 percent in the first quarter, 40 basis points lower than the year-end 2016 figure. Asking rents are on the rise, spiking by nearly 2 percent in just the first three months of the year to $949 per month.

Q1 | 2017 | Tucson Metro | Multifamily Market Report

Vacancy Decline Fuels a Strong Start to 2017. The Tucson multifamily market started out 2017 on an upward trajectory. Vacancy fell 40 basis points in the first quarter, reaching 6.5 percent. This is the second-lowest vacancy rate recorded in Tucson in the past 10 years. Asking rents increased 0.7 percent in the first quarter, reaching $693 per month. The favorable conditions in Tucson are heating up the investor activity in the market. Activity in the first quarter of 2017 is 40 percent higher than the average quarterly transaction count in 2016.

Retail Market Report | Greater Phoenix

Q1 | 2017 | Greater Phoenix | Retail Market Report

Robust Net Absorption to Start 2017. The Greater Phoenix retail market got off to a strong start in 2017, with net absorption topping 700,000 square feet, vacancy inching lower and rents ticking higher.  These healthy first quarter results brighten the outlook for 2017. Vacancy dipped to 9.3 in the first quarter, a slight decline from both the end of 2016 and from one year ago. Asking rents rose a bit in the first quarter, and at $13.98 per square foot are up 1.7 percent.

Medical Office Market Report | Greater Phoenix

Q4 | 2016 | Greater Phoenix | Medical Office Market Report

Strong Activity to Close 2016. The Greater Phoenix medical office market posted a strong fourth quarter, with healthy absorption, declining vacancy and accelerating investment activity. Net absorption totaled more than 180,000 square feet in the fourth quarter, bringing the total for the year to nearly 490,000 square feet. Vacancy fell to 15.6 percent, 200 basis points lower than one year ago. Sales activity accelerated to close 2016, with the greatest spike in velocity occurring in condos.

Land Market Report | Greater Phoenix

H2 | 2016 | Greater Phoenix | Land Market Report

Land Sales Accelerate to Close 2016. The Greater Phoenix housing market continued its steady pace of improvement in the second half of 2016. In 2016, developers pulled approximately 18,600 single-family permits and more than 9,400 multifamily permits. Land sales accelerated in the second half of 2016 and total activity for the full year was similar to the 2015 pace. Sales of land parcels for residential uses account for the greatest share of activity, and these transactions gained momentum in the second half of 2016. Commercial property performance continued to improve in the second half and the forecast is optimistic

Research Contact:

Pete O'Neil Research Director
Greater Phoenix
Direct + 1 602 222 5029 pete.oneil@colliers.com