Phoenix Retail Market Report

Low vacancy positions growing nodes for new supply. Well-leased deliveries and resilient backfilling marked Phoenix as just one of eight major markets where vacancy declined last year. Key growth corridors continued to outperform as retailers followed rooftops and repeat-trip spending. Vacancy in Buckeye, Goodyear, Gilbert, and Queen Creek dropped below 3 percent last year and dipped under 1 percent in select nodes, reflecting tight conditions that should keep deliveries here well received. Leasing by necessity- and convenience-oriented retailers is expected to sustain low availability in these areas, highlighted by ALDI’s plan to open 10 Phoenix-area stores in 2026. In contrast, vacancy pressures have been greater in older areas such as Mesa and Glendale, and outlying nodes like Casa Grande, where anchor turnover drove rates above 6 percent. Even so, limited construction in these areas is likely to contain further vacancy expansion and support gradual backfilling as owners reposition recently vacated space.