Phoenix Retail Market Report (4Q 2020)25 Jan 2021
The retail real estate sector in Phoenix has performed well under difficult conditions as lessons from previous cycles that tempered construction activity and put retailers in fighting shape to innovate and adjust. By the final quarter of a tumultuous year, the promise of imminent vaccination and pent up demand put consumers in a more optimistic mood. Aggregate retail sales for Metro Phoenix fell in April, but have since risen 20% to $10.1 billion. A surprising number of restaurants have opened recently, albeit with reduced footprints, accommodations for outdoor seating and curbside pick-up. Restaurant sales in Metro Phoenix are down 12.2% year over year to $1.9 billion, having climbed 47.1% from the depths of April 2020. The industry is resilient.
Market Inventory: 170,760,326 sf
Vacancy Rate: 9.0%
Net Absorption: -20,611 sf
Construction Pipeline: 239,456 sf
Average Asking Rate: $19.51 psf