January 22, 2010, Phoenix – Colliers International–Greater Phoenix released its fourth quarter 2009 Office and Industrial Market reports for metro Phoenix. Report highlights include:
Office Market
- Overall vacancy rates remained unchanged at 21.9 percent for fourth quarter.
- Overall absorption reversed previous trends by posting a positive 510,776 square feet. For the entire year, however, absorption ended at a negative (1.84) million square feet.
- Deliveries rose slightly at 475,320 square feet in fourth quarter. Under construction activity continued to decline to 1.5 million square feet.
- Rental rates averaged $23.02 per square foot, down from $23.64 per square foot in third quarter. Overall, rates were down $2.85 per square foot from fourth quarter 2008.
- Sales for the quarter declined to $35.3 million, compared to $118.8 million in third quarter.
- Capitalization rates averaged 10.5 percent, an increase from 9 percent last quarter.
Industrial Market
- Overall vacancy dropped slightly to 17.2 percent, from 17.5 percent in third quarter.
- Absorption showed a positive 1.0 million square feet in fourth quarter, with a negative (4.1) million square feet for 2009.
- More than 1.2 million square feet were delivered in fourth quarter, with 1.6 million square feet delivered in 2009. Approximately 812,000 square feet of warehouse and manufacturing space are currently under construction.
- Rental rates fell to $0.72 per square foot per month, down from $0.75 last quarter.
- Sales activity remained sluggish at $71.3 million, compared to $113.7 million in third quarter.
- Capitalization rates averaged 7.5 percent, a change from 8.6 percent in third quarter.
To download the market reports, please click on the links below.
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