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Market Report

Phoenix Retail Market Report

2Q 2023

Headline Population Gains and Elevated Visitor
Counts Prop up Robust Retail Metrics

Recent growth fuels historically low vacancies across Phoenix. Maricopa County added 57,000 new residents over the year ended June 2022, marking the strongest population growth for any U.S. county during the span. Recent population gains have translated to robust retailer demand for available space across most of the metro, with Phoenix’s vacancy rate dropping faster than any major U.S. metro over the past year ending in March. Additionally, the six-largest submarkets by inventory each registered 15-year vacancy lows at the end of the first quarter, with all notching annual declines of 90 basis points or more. Tight conditions are poised to remain longer-term as the county is expected to add an average of 54,800 new residents over each of the next four years. 
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