Phoenix retail market report

Q1 2022

The Phoenix retail market was strong in the first quarter of 2022, as vacancy rates continued to decline despite rising rents. The demand for retail properties in the area has outpaced deliveries, as total available space declined for the 6th consecutive quarter. The outlook for 2022 remains positive with no obvious signs of an impending slowdown in retail demand ahead. 

185 msf


Phoenix delivered more than 670,000 sf of new retail space in the quarter, bringing the total inventory for retail properties with at least 10,000 sf in space to 184,641,509 sf.

1.2 msf

Net absorption

Phoenix recorded its sixth consecutive quarter of positive net absorption with a gain of 1,201,578 sf in Q1 2022. This marks the largest gain in quarterly net absorption since Q4 2017.


Direct asking rent

Average FS asking rents experienced a steady increase in recent quarters, rising from $14.95 psf in Q1 and ending at $15.66 psf in Q1 2022. The highest rent prices came from properties in the Scottsdale submarkets, with an average asking rent of $23.40 psf.

12.9 msf


Total available retail space declined by 1,340,640 sf in Q1 2022, lowering available space below 13 msf for the first time in over a decade. At the end of Q1 2022 there was 12,623,890 sf of direct availability and 278,868 sf of available sublease space.



The direct vacancy rate declined to 6.9% in Q1, while the sublet vacancy rate remained at 0.1% of existing retail inventory. At the end of the quarter, there was 12,852,722 sf of vacant retail space in total.


Investment sales

Investment activity in Q1 2022 amounted to approximately $313.6M, a substantial increase from the $161.6M in investment activity recorded in Q1 2021. The average price per square foot came in at $227.10 in Q1 2022.

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