Arizona economic situation may grow slowly

The Phoenix commercial market is struggling to recover.

The situation for property management companies in the Phoenix commercial real estate market is making some improvements, but a full-fledged recovery may be far off.

Nearly one-quarter of the metro area's commercial real estate is still vacant, which is more than double the expected average, according to a report from Elliott D. Pollack and Company. This is a stark contrast from the city's residential housing market, which improved markedly in recent years.

Prices for the commercial market have improved, which could help the market's recovery, news station KTAR reported, citing the firm's report. This could specifically help improve the office and retail sectors in the area.

"A 12 percent vacancy rate could be considered normal," Rick Merritt, economist at Elliott D. Pollack and Company, told the news source. "It's going to take three to four more years to get back to that number from where we are now."

Despite the struggles in the Phoenix area, the national market experienced some multifamily rent gains last year. Citing a report from MPF Research, MultiFamily Executive noted multiple cities in California experienced positive rent growth last year. San Francisco, San Jose and Oakland all had rent growth of more than 7 percent.

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