Vacancy Increased Slightly in Third Quarter and Sales of Retail Centers Dipped

Phoenix, AZ –   The Greater Phoenix retail market experienced a cooling effect over the summer months of third quarter with net absorption slowing and vacancy rising for the first time since 2014.  Colliers experts anticipate a strong finish for 2016 as fourth quarter retail picks up pace.  The retail report by Colliers International in Greater Phoenix can be accessed by clicking Here.

Net absorption remained positive in the third quarter, but had declined to just 77,000-square- feet compared to 320,000-square-feet in the second quarter.  This was the lowest quarterly figure for retail net absorption in nearly five years.  Fourth quarter is historically strong for absorption as retailers expand to meet heightened demand of holiday shopping.  A strong fourth quarter will signal that the third quarter performance was a short-term slide, as opposed to a change in direction of the Phoenix retail market.

Vacancy of Metro Phoenix retail space rose from 9.4% to 9.6% during third quarter.  Despite this quarter of increase, the vacancy rate is down 20 basis points year over year.  This increase is attributable to positive net absorption not being strong enough to keep up with new development.

Asking rental rates rose during the past three months, but are up less than 1% from one year ago.  Stronger rent growth will come when we experience a more robust pace of absorption in the market.  Some of the strongest rent growth is being seen in the West Valley where vacancy is low and net absorption has been strong for the past several years.  East Valley rents have pushed higher as well, but vacancy improvement has leveled off in this area.

Sales activity of shopping centers has been uneven during 2016, accelerating in the second quarter and slowing down in third quarter.  Year to date, sales velocity is up 12% from the same period in 2016.  The median price fell slightly during the past three months to $125 per square foot.  Cap rates are compressing in response to a strengthening economy and continued low interest rates.  Cap rates dipped below 7% in the third quarter and the 2016 average is 7.1%, down more than 50 basis points from 2015.

The retail market in Metro Phoenix is mimicking the overall local economy.  The market is expanding, but at a slower pace than in the first few years of the economic recovery.  The historic strength of fourth quarter in retail indicates the final months of the year will be good. The projected 2017 expansion of employment, population and housing sales will help to drive forward the retail market.  Colliers International anticipates some store closures in the first few months of the new year that will drag slightly on retail absorption.  Thus far, store closures have been successfully backfilled with new retailers, which reduces the fear of a negative impact that future closures might present.

TUCSON, AZ – The Tucson Association of REALTORS® (TAR) and the NATIONAL ASSOCIATION OF REALTORS (NAR) are pleased to announce November as REALTOR Designation Awareness Month. NAR established November as an important month in which to encourage its members to start or complete an officially endorsed designation or certification through NAR or one of its Institutes, Societies and Councils.

“In today’s market, continuing education is our best way to stay ahead of the competition.  Now more than ever, successful agents must keep current on issues, involving technology, changing legalities, and many other central components of the business,” stated Andrea Ballard, Chief Operating Officer of Tucson Association of REATLORS^Ò. NAR offers advanced designation and certification programs to help members remain up-to-date in such a dynamic environment. Although other designations exist, only these carry an official NAR endorsement.

Ballard adds, “REALTORS have access to advanced education designation and certification programs, tailored to virtually every real estate specialty.  Beyond building skills, knowledge and productivity, these prestigious programs enhance the professional image of REALTORS and take our members to the next level.”

In 2008, the National Association of REALTORS created NAR’s Green Designation to serve the growing demand for green expertise in real estate. The Green Resource Council awards the industry-recognized NAR Green Designation to REALTORS  who have met the educational and practical requirements.

The first NAR GREEN designee in Tucson is 2015 TAR Board President, Nicole Brule-Fisher, who is also the first certified Tucson EcoBroker®. Brule-Fisher stated, “Responsible. Ethical. Green. Sustainable.  I believe these are the keystones to our success as REALTORS^Ò  in our community.”

The NATIONAL ASSOCIATION OF REALTORS and Tucson Association of REATLORS strongly encourage its members to increase their professional image, marketability, productivity and earnings through the pursuance of a designation or certification program.

For a complete list of the official NAR family designations and certifications, visit www.realtor.org/designations-and-certifications

Phoenix, AZ – Vestis Group, a multifamily brokerage and investment firm, is pleased to announce the sale of Trinity 38 Apartments, a 16-unit apartment complex located at 3234 North 38th Street, in the Arcadia-area of East Phoenix for $2.6 million or $162,500 per unit.

“Trinity 38 is located near hip Arcadia neighborhood restaurants, coffee shops, bars, health clubs and is a short drive to the Biltmore and Camelback Corridor,” says Natan Jacobs, Principal at Vestis Group and the lead broker for this transaction, “This neighborhood continues to be red-hot for investment with development projects almost everywhere you look, completed or under construction, including several new-home subdivisions and several recent apartment repositions. Trinity, as a turnkey multifamily community, will continue to add value for the new ownership moving forward.”

The Phoenix based Vestis Group multifamily brokerage team of Natan Jacobs, Les Litwin, Chad Barber and Matt Morrell negotiated the transaction on behalf of the seller, a private investor from Scottsdale, Arizona. The buyer, a private investor from Santa Rosa, California, was represented by Victoria Miachika of Arizona Investment & Management, LLC in Scottsdale, Arizona.

Trinity 38 Apartments is centrally located in the Arcadia-area of Phoenix near numerous Valley hotspots, including: The Vig Arcadia, La Grande Orange Grocery, Postino WineCafe, Beckett’ s Table, Crudo, Nook, Chelsea’ s Kitchen and North Italia. The property is located in a quiet residential neighborhood one half mile south of Indian School Road, along 38th Street, allowing easy access to Biltmore shopping, Arcadia restaurants, and the Camelback Corridor, Phoenix’ s premier upscale shopping, dining and financial district. Nearby freeway access to State Route 51 (Piestewa Freeway) which connects to Interstate 10 (Maricopa Freeway), Loop 202 (Red Mountain Freeway), providing easy access to Downtown Phoenix, Sky Harbor International Airport, Tempe, Scottsdale, the southeast and southwest Valleys.

Built in 1962, Trinity 38 Apartments was fully remodeled and repositioned in 2015. Interior property upgrades include in-suite laundry, stainless-steel appliance package, double stainless steel sinks with garbage disposal and retractable multi-setting faucet, upgraded countertops with porcelain tile backsplash, stained concrete floors, porcelain tile shower surrounds with new fixtures, premium lighting, and low-flow toilets. The revamped exterior features a manicured courtyard featuring a stainless steel barbecue grill, steel pergola, swimming pool, pet friendly accommodations, keyed entry pedestrian gates and covered parking.