The Phoenix retail market has experienced a surge in rents due to strong population growth and consumer spending. Annual rent growth in the second quarter of 2023 exceeded 9%, triple the market’s pre-pandemic average and higher than the national average. Phoenix was the fourth-fastest-growing market in the US in 2022, attracting people and businesses seeking affordability, job opportunities, and a favorable regulatory environment. Limited construction and high demand have compressed the availability rate below 5%, allowing local landlords to achieve significant rent increases. While rent gains are expected to normalize in the future, Phoenix is projected to outpace the national level in terms of rent growth through 2024.
