Phoenix has established itself as a national leader in population growth and economic expansion, and with growth comes increased demand for retail goods and services. The increased demand seen in the Phoenix retail market has led tenants to pay a premium to secure high-quality retail space, driving average market rents from $21.90/sf in Q3 of 2022 to $23.78/sf in Q3 of 2023 – an increase of $1.88/sf (8.6%) year-over-year. Phoenix retail leads the nation in annual rent growth at 8.6%, far exceeding all other major cities in the Top 10. The 2nd and 3rd markets on the list are Atlanta and the Inland Empire, where rents have increased by 6.3% and 4.6%, respectively.
August 23, 2023