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Colliers 2021 Q1 Greater Phoenix Retail Market Report

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Q1 2021 Retail Market

Key Takeaways
  • Vacancy decreased 20 basis points quarter-over-quarter
  • Leasing activity drastically increased from low point in 2020
  • Investment sales reached $382 million first quarter
The Greater Phoenix retail market ended Q1 2021 posting 246,897 SFof net absorption.

Rental rates continue showing signs of growth, despite national headlines of business failures, rising 1.10% year-over-year.

Construction continued forward with the market delivering 231,020 SF of new space in the first three months, with an extremely low vacancy rate of only 5%.

Investment sales remained healthy with transactions totaling $382 million.

The median price paid per square foot increased 14 percent year-over-year to $191 psf.

Outlook: Demand for drive-thru space and creation of new restaurant concepts have been driving a market for new construction. Additionally, the sprawl in both east and west valley regions is creating even more demand for more retail space. The rising price of land and the dramatic increase in construction costs will continue pressuring rental rate increases.

Retail Market Colliers International in Arizona

Colliers 2021 Q1 Greater Phoenix Retail Market Report

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Phillip Hernandez

Senior Research Manager, Arizona


As research manager for Colliers in Arizona, Phillip Hernandez is responsible for proactively developing and implementing research objectives and directing all research activity for the Arizona offices.

He provides leading-edge, thought-provoking research and analysis of market data for use in producing quarterly statistical market reports for each property discipline, as well as other ad hoc reports, research projects and presentations. Phillip analyzes and interprets real estate trends and maintains a database of economic indicators to provide forecasts.

Regardless of the property type or sector, Phillip believes each has a story to tell and that data provides the opportunity to redefine the narrative. With a background in location analytics, he is highly experienced in interpreting complex data sets. Using the latest technology, Phillip developed a system to blend analytics with a visually attractive approach to bring data to life.

Focusing on business development, he leverages market intelligence and insights for thought leadership content strategy in support of client engagement. His goal is to strategically align research and business development efforts and present research in an easily digestible format that promotes Colliers’ market share and revenue growth.

Colleagues describe Phillip as a brilliant storyteller and a passionate, creative and experienced professional.

Prior to joining Colliers, he served as a business analyst at CBRE, where he specialized in creating tailored research reports, as well as unique and interactive applications and dashboards that elevated the market position of assets. Phillip delivered weekly research updates, with relevant lease and sale comps, custom competitive sets and current market activity.

He provided complex market and trend analyses, monitored an extensive database of proprietary market data, and delivered custom quarterly and annual reports that were strategically positioned towards targeted clients. He also led weekly department research meetings to develop initiatives surrounding market trends, produce innovative industry solutions and analyze client-centric objectives.

Previously, Phillip was a GIS analyst for the central region of CBRE. Working exclusively with top-performing markets, he created unique models that illustrated custom real estate datasets through location analytics. Phillip produced high-quality geographic and demographic maps, and investigated multiple approaches to storytelling through map and market analytics.

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