Phoenix’s retail sector ended the year on a high note, with 2.3 million square feet of new construction in Q4 2023. A recent survey by Avison Young revealed that while only 1.5 million square feet were delivered in 2023, there was a slower pace of completion compared to construction.
According to James DeCremer from Avison Young, Arizona’s retail market is displaying strong performance and promising trends for continued success. For the first time in his career spanning over two decades, vacancy rates have dropped below 5% and rents are increasing.
The Valley currently has its lowest retail vacancy rate in twenty years at just under five percent for direct space and only one-tenth of a percent for sublet space.
With asking rents reaching $24.36 per square foot annually and $2.03 per square foot monthly – both decade highs – Phoenix’s retail market is thriving as one of the top performers nationally when it comes to annual rent growth.
