Phoenix Retail Market Report

Vacancy is down dramatically. The marketwide rate ended March 170 basis points below the trailing half-decade average, the largest downshift among major metros. Standout vacancy performance is being supported by West Phoenix, where the local volume of vacant stock shrank by 56 percent in the last five years. Here, rapid population growth is attracting robust demand from tenants. Over the year ended in March, occupied apartment stock in the Avondale-Goodyear-West Phoenix area grew by 25 percent, which was the strongest gain among major U.S. submarkets. Viewing these inflows, retailers are slated to move into over 500,000 square feet here in 2024. Local vacancy is likely to remain on the decline as a result, with less than 5 percent of the retail pipeline here remaining available as of June.