Will we start to see retail development again soon?

Retail space for lease in Gilbert, Arizona

New Retail Development in Gilbert, AZ – 2014 Delivery

Arizona’s economy is heating up again and we’re trying to make room for the estimated 500,000 people that will be coming to our fine state over the next seven years. As a result, there’s a frenzy among home builders to acquire lots and build homes {not quite the tempest that we experienced a few years back, thankfully}.  This activity is a great sign for retail and for Arizona in general, which then begs the question:

Will we start to see substantial new retail development again soon? 

Now that the inventory of retail boxes of 10,000 SF or greater has been reduced from over 300 in 4th Q 2011 to approximately 270 today {positive net absorption of +/- 40 boxes} and overall vacancy has been reduced from 11.7% 1Q 2012 to 11.0% 1Q 2013.  The retail market has now recorded positive net absorption in 9 straight quarters and 10 of the past 11 quarters – a very good sign.

James DeCremer | Senior Vice President

jamesd@srgaz.com | 602.778.3840