The Phoenix retail market continued to outperform in 23Q2 as strong demographics, resilient consumer spending, and steady job creation supported demand at local retailers. Thanks to these tailwinds, The Valley recorded its eighth-consecutive quarter of positive net absorption, compressing vacancy to an all-time low of 4.7%. Quick-service restaurants, grocery stores, medical tenants, and fitness users have been the primary sources of growth.
Phoenix’s strong retail performance has spurred record levels of investment over the past few years, though sales volume is beginning to wane. Nevertheless, approximately $2.1 billion in retail assets have traded in the past 12 months, in line with the five-year average of $2.4 billion annually. Continue below for more information, or to download the full report!