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Market Report

Phoenix Retail Market Report

4Q 2023

Substantial Retailer Competition Positions Asking
Rents to Reach a Record Pace in 2023

Submarket trio’s space demand led the nation. In the first half of 2023, West Phoenix, the East Valley and North Phoenix ranked first, second and fourth in the U.S. for retail net absorption. Retailers are aggressively expanding across the suburbs in response to Maricopa County’s recent, nation-leading population growth, favoring residential pockets best-suited to host future in-migration. This potential stands out in these three submarkets, as over 5,600 apartments were delivered here during the span, with nearly 18,400 additional units under construction as of October. Correspondingly, each location noted record-low retail vacancies in June. Multiple tenants pursuing leases at available, well-positioned spaces across these areas will play a major part in driving an all-time high, more than 8 percent gain in Phoenix’s overall average asking rent in 2023.
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