The Arizona Republic had some interesting reasoning on why commercial leases were down 39% year-over-year in the first half of 2007:
New numbers released Thursday by brokerage firm Cushman & Wakefield of Arizona Inc. show that the Valley’s commercial tenants took up 1.4 million square feet of industrial space from January through June.That’s down significantly when compared with the first half of 2006, when tenants took up 2.3 million square feet of space. The drop is partly because of a shortage of space.
"We’ve been in a pent-up demand situation for a very long time," said Jim Wilson, senior director with Cushman & Wakefield in Phoenix.
Pent-up demand? We’ve been watching commercial projects go up around the Valley at breakneck speed for a while now- and there are "For Lease" signs everywhere. What pent-up demand?
We get a slightly different view from Thursday’s East Valley Tribune in an article entitled Plenty of Office Space Available:
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