PHOENIX — Phoenix’s commercial retail real estate market is having one of its most successful moments in recent history, with a record low vacancy rate reported in the second quarter.
The Greater Phoenix retail market vacancy level hit a historic low of 4.8% at the end of June, according to a report released by Colliers in Arizona. The low vacancy rate reflects a strong demand from tenants to have a presence in one of the nation’s fastest-growing cities.
The data for Q2 2023 marked the 12th consecutive quarter that Phoenix’s retail vacancy rate has decreased. Eight out of nine geographic submarkets in the city posted retail vacancy decreases year-over-year. Downtown Phoenix was the only submarket with a rise in vacancies.
There also appears to be a demand from consumers in the Valley to spend, and spend often. Data from Affinity Solutions shows that Phoenix has experienced a 16.5% increase in all consumer spending since January 2020.
