The Metro Phoenix retail market closed out 2017 on a high note, absorbing over 1 million square feet (msf) in Q4 alone. This year end spike in net absorption brought the overall 2017 total to over 2.15 msf. Throughout 2017, the demand for all retail types held strong against the continued rise of the e-commerce market. Despite online retail’s success, Phoenix saw brick-and-mortar retail demand growth increase along with economic growth in 2017. With vacancy rates at a near ten year low, inventory demand is expected to increase in 2018.