PHOENIX-Though reports of retail absorption showed a definite slowdown during Q1 2013, statistics from Velocity Retail Group and Colliers International's Research & Forecast Report point out that absorption will continue trending higher as the year wears on.

During the first quarter, the Colliers report listed net absorption at 248,000 square feet during the first quarter in direct contrast to the 1.4 million square feet the region experienced during Q4 2012. Though a drop-off in absorption is common between fourth and first quarters, especially in retail, the Colliers report noted that net absorption during January-March 2013 was down 50% from the same period of time a year earlier. Velocity Retail's absorption statistics stood at just under 500,000 square feet absorbed in Q1, versus 1.5 million square feet absorbed during Q4, though remained the same year over year.

Cheerier news comes with the vacancy rate, which continues its decline from its peak of well above 13%. Velocity Retail reports Q1 vacancy at 11.5%, down from just over 12% during the same time last year. The Colliers statistics are similar, noting that vacancy stood at 11.4% (down from 12.4% year over year). Some submarkets saw single digit-vacancies – the Velocity numbers indicate that the north submarket ended the first quarter at 8.8%, with the southwest showing 8.9% vacancy. Colliers has the northwest submarket leading the vacancy charge at 9.6%, followed by the CBD at 9.8%. Both companies forecast a continued boost in absorption and measured slide in vacancy rates during the remainder of the year.