Following another quarter of steady improvement, the Phoenix retail sector boasts some of the tightest market conditions in recent memory heading into late 2023. The combination of robust population gains, healthy consumption growth, a lack of store closures, and limited new supply has created the perfect storm for continued outperformance.
Geographically, development activity is most prominent in the metro’s periphery. West Valley submarkets like North Goodyear/Litchfield, Goodyear, and Glendale boast some of the strongest rates of population growth in Phoenix and comprise more than a third of the development pipeline. In the South East Valley, the rapidly growing town of Queen Creek has been another hotspot. Moving forward, elevated interest rates and uncertainty regarding the future path of monetary policy are expected to keep deal flow muted. Nevertheless, Phoenix’s steady demographic tailwinds are expected to keep the Valley as one of the better-performing markets in the nation and support the metro’s long-term outlook. Check out the full report below!