The Phoenix market led the U.S. with 1.4 million sq. ft. of net absorption in the third quarter, bringing the year-to-date total to 2.4 million sq. ft.
Net absorption in the Chandler submarket totaled 492,496 sq. ft. in Q3 2019. The Chandler submarket posted the highest net absorption for a single quarter out of any submarket since Tempe had 537,378 sq. ft. in Q4 2015.
The strength of tenant demand continued in Q3 2019 as strong market fundamentals continued to put downward pressure on the vacancy rate as vacancy declined for the sixth consecutive quarter to 14.9%.
The overall full service average asking lease rate decreased slightly to $26.76 per sq. ft. from $26.89 per sq.ft. in Q2 2019.
The difference in full service gross asking lease rates between the suburban market and CBD continued to diverge. The average direct asking rent for Suburban Markets was $27.15 per sq. ft.