Multifamily development continues to grow in the metro Phoenix market

The metro Phoenix multifamily market finished third quarter 2019 with strong absorption and completions, according to Cushman & Wakefield.

The market absorbed nearly 1,500 units during the third quarter, bringing the year-to-date net absorption total to 7,646 units, more than double the average annual absorption since 2000 of 3,343 units. The Glendale/West Valley (with absorption of 724 units), Northwest Valley (366 units) and Tempe (139 units) submarkets recorded the highest net gains in positive absorption in the third quarter of 2019. Chandler/Queen Creek (with negative absorption of 90 units) and Central Phoenix (–16 units) submarkets saw the largest negative absorption in the third quarter.

Although the market has strong net absorption, vacancy increased 10 basis points from third quarter 2018 (4.8 percent) to third quarter 2019 (4.9 percent), due to a large number of class A projects delivered during the quarter. The Scottsdale submarket vacancy rate declin