The Phoenix retail market in Q3 2025 shows a slight uptick in vacancy and a healthy increase in asking rents, while construction activity and sales pricing have declined. Net absorption remains positive, and deliveries continue to outpace the previous year. Explore our full Phoenix retail market report for detailed insights into leasing, investment, and development trends.
3Q 2025 Phoenix Retail Market: Key Data Points
- Vacancy Rate Inches Up: Retail vacancy rose to 4.6%, a 20 basis point increase year-over-year.
- Asking Rents Increase: Average asking rent reached $1.67/SF, up 5.42% from Q3 2024.
- Construction Pipeline Contracts: Space under construction dropped to 1.84M SF, a 40.8% decrease year-over-year.
- Sales Prices Decline: Average sales price per square foot fell to $239, down 20.4% year-over-year.
- Net Absorption Positive: Net absorption totaled 1.59M SF YTD, a 110.9% increase from the prior year.
- Construction Deliveries Rise: YTD deliveries reached 1.83M SF, up 13.4% year-over-year.
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