CBRE: Phoenix is rising
Phoenix — The metropolitan Phoenix retail market ended the third quarter with a retail vacancy rate at 10.5%, down nearly a full point from 11.3% a year ago, according to CBRE’s Phoenix Retail MarketView report for the third quarter.
The market recorded positive absorption of 385,625 sq. ft. for the quarter and so far this year has absorbed 1.1 million sq. ft.
In the last 24 months, 1.3 million sq. ft. of new retail space has come to market across metro Phoenix. That compares to an average of 5.5 million sq. ft. per year from 2000 to 2010, with the high point coming in 2007 when 11.6 million sq. ft. arriving. So the market is absorbing excess space.
In terms of tenant activity, Class-A spaces and premium locations are receiving considerable interest from retailers.
CBRE also speculates that the slow recovery combined with online shopping have altered the metro Phoenix retail landscape. Despite the positive absorption, a lot of retail space remains vacant, especially in non-premium big box locations.
According to the “Third Quarter 2013 Economic Outlook,” published by the Forecasting Project at the University of Arizona, the state will see gains in jobs, income, population and retail sales in 2013, with growth accelerating next year.
Ho-hum, P&G meets sales and profit expectations
It was steady as she goes at Procter & Gamble during the company’s first quarter as thenation’s largest consumer packaged goods company generated sales and profits that met expectations.
Sales increased 2% to $21.2 billion and net income increased 8% to slightly more than $3 billion, or $1.04 a share, from $2.8 billion, or 96 cents a share.
“P&G’s first quarter results were consistent with our plans and expectations, putting us on track to deliver our goals for the fiscal year,” said P&G chairman, president and CEO A.G. Lafley. “We have good market share momentum, a number of strong innovations coming to market over the balance of the year, and cost savings from productivity efforts that will continue to build. We remain focused on driving innovation and productivity. We continue to improve operating discipline and execution every day to create value for consumers and shareowners.”
The company stated that beauty segment organic sales increased 1% driven by innovation in hair care, deodorants, cosmetics and personal cleansing, coupled with market growth. This was partially offset by a decrease in skin care sales and unfavorable geographic and product mix.
Meanwhile, grooming segment organic sales increased 1% because of higher pricing and innovation on blades and razors and appliances, which were partially offset by unit volume market contraction in developed regions, P&G stated.
Looking to fiscal year 2014, P&G continues to expect organic sales growth of 3% to 4%. All-in sales growth is estimated in the range of 1% to 2%, including a negative foreign exchange impact of approximately 2%. Core earnings per share are expected to grow 5% to 7% for the fiscal year, and reported earnings per share are expected to grow in the range of 7% to 9%.
Higher paint sales volumes boost Sherwin-Williams in Q3
Sherwin-Williams cited higher paint sales volumes in its Paint Stores Group and acquisitions as helping to drive net sales growth.
The company increased net income 12%, to $262.97 million from $234.95 million, during the third quarter of fiscal 2013.
Net sales grew 9.4% to $2.85 billion from $2.6 billion.
In September 2013, the retailer completed the acquisition of the Comex U.S. and Canada businesses which added an additional 306 stores, and during the quarter purchased 1.5 million shares of its common stock through open market purchases.