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Colliers 2021 Q2 Greater Phoenix Retail Market Report

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Q2 2021 Retail Market

Key Takeaways
  • Vacancy decreased 20 basis points quarter-over-quarter
  • Year-to-date net absorption is 496,542 square feet, more than double all of 2020's amount
  • Investment sales reached $350.5 million in the second quarter, 19% higher than the first 6 months of 2020
Second quarter was a drastic change from last year. The Greater Phoenix retail market ended Q2 2021 narrowly edging out the previous quarter by posting 249,645 square feet of net absorption. 

There was 249,645 square feet of positive absorption followed by a slight increase in rental rates. 

Investment sales this quarter were higher than all of 2020, ending at $350.5 million. 

Rental rates continued showing positive growth, rising 1.98 percent year-over-year ending at  $14.90 per square foot.
Construction continued forward during second quarter as the market delivered 188,470 square feet of new space within three projects and posted another 382,505 square feet underway.
Investment sales in the retail market improved during second quarter with transactions totaling $350 million, bringing year-to-date sales volume to $636 million. 

The median price paid per square foot percent landed at $222. 

Outlook: Pent-up demand resulted in a retail spending increase of 25 percent compared to January 2020. Phoenix maintains its top metro position for net migration for the 3rd consecutive year from July 2019-2020, so our market is witnessing more and more demand for retail outlets entering the area. Development in suburban areas make up more than 80 percent of construction as developers actively work to keep up with the strong growth.

Retail Market Colliers International in Arizona

Colliers 2021 Q2 Greater Phoenix Retail Market Report

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Phillip Hernandez

Director, Research | 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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