PHOENIX-Velocity Retail's research for Q2 2013 retail showed a decrease in vacancy and an increase in leasing activity. Specifically, vacancy stands at 11.3%, down 1% from six months ago and a decrease of more than 2% from its highest level of 13.7% during Q3, 2011.

Another positive factor is that many regional areas have improved as well. These include:

• Southwest at 8.2%. Vacancy stood at 12.4% at its highest point during Q4, 2009.
• Southeast, at 12.8%. Vacancy during Q3 2011 stood at 14.8%. The area has experienced 525,000 square feet of leasing activity during the past six months.

Furthermore, Velocity retail is projecting an area-wide, single-digit vacancy rate by the end of 2013 or the beginning of 2014. This would be the first time the vacancy rate would be below 10% since the end of 2008, when the vacancy stood at 9.8%.