Anthony Ruiz provides an abstract on the Metro Phoenix Retail Market during the start of 2022. Click on the link below for the full Retail Newsletter!
Anthony Ruiz, Advisor;
“I’m being surprised on a daily basis! Phoenix retail hasn’t shown any signs of slowing down, and Q1 2022 was a sign of that. Leasing has still been on an uptick, with the average price per square foot for base rent being around $21-$22/SF. While many new National credit tenants are flocking to areas like Avondale, San Tan, and Surprise, there has still been plenty of activity within class b and c properties with new, viable local businesses still opening up their first or next location.Cap rates are still compressing, as investors look towards retail to still find returns as purchasing Multifamily or industrial becomes increasingly difficult. Average cap rates have gone from high 6s to mid, even low 6s.In summary, people and businesses are flocking to Arizona! The only thing that can’t come fast enough is new inventory. Don’t believe the naysayers about retail being dead. It’s evolving instead.“