Phoenix’s post-pandemic box retail market competition intensifies across all property sizes in 2024
- The Phoenix retail market has witnessed a remarkable rebound post-pandemic, sustained by steady population growth and continued consumer demand. Notably, the market achieved its lowest overall vacancy rate, ending Q4 of 2023 with a mere 4.9% in direct vacancy.
- A closer examination of single tenancy buildings across small, medium, and large box vacancies reveals a noteworthy trend. All three space categories are currently experiencing their closest proximity in vacancies observed over the past decade, each boasting a vacancy rate below 3%. This trend underscores the market's resilience and tight competition, expected to persist throughout 2024 amidst limited new developments and low available space.
- The Phoenix market has not developed new retail for many years therefore demand has surpassed the supply, and developers are trying to catch up. Users for entertainment, sports and gym uses are taking any available boxes they can find due to the limited inventory, and this is helping to drive down vacancy.
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