Vacancy rates for retail properties in Phoenix decreased to 5.1% in Q3 2023, marking the lowest ever recorded. Post-pandemic, there has been a surge in tenant demand, especially from grocery stores and fitness centers. These businesses are increasingly occupying larger spaces in malls and mixed-use developments, with rates surpassing pre-pandemic levels. Despite economic uncertainties, the retail leasing market in Phoenix has continued its robust growth. The third quarter witnessed a positive net absorption of 373,525 SF, the 12th consecutive quarter of positive growth.