Provided by MHP (TCN's Manhattan, NYC member firm)
The Scottsdale Office market ended the second quarter 2015 with a vacancy rate of 15.8%, which was slightly lower over the previous quarter. Net absorption totaled positive 42,390 square feet and rental rates ended the second quarter at $23.29, an increase over the previous quarter. No buildings were delivered, but 239,189 square feet are still under construction at the end of the quarter.
The Scottsdale retail market experienced a slight improvement in market conditions in the second quarter 2015. The vacancy rate went from 7.3% in the previous quarter to 7.5% in the current quarter. Net absorption was negative (38,078) square feet, thus creating an increase in vacant space. Quoted rental rates increased from first quarter levels, ending the second quarter at $20.24 per square foot per year. No buildings were delivered in the second quarter but 172,689 square feet are still under construction at the end of the quarter.
The Scottsdale Industrial (Northeast Ind) submarket ended the second quarter 2015 with a vacancy rate of 9.5%. The vacancy rate increased since the previous quarter, with net absorption totaling a negative 35,131 square feet in the second quarter. Vacant sublease space also increased in the quarter and rental rates ended at $11.32, an increase over the previous quarter.
"As we enter the second half of 2015 we see markets which are continuing to trend towards favorable levels. Buyers are beginning to respond to the Federal Reserve’s hint of an interest rate increase later this September. We see a pronounced increase in the acquisition market and anticipate this activity will continue going forward into 2016."