The Phoenix retail market in Q4 2025 maintained stable vacancy rates while rental rates continued to rise. Construction activity accelerated, with a significant increase in space under development, and absorption outpaced deliveries. Explore our full Phoenix retail market review for detailed insights and trends.
4Q 2025 Phoenix Retail Market: Key Data Points
- Vacancy Rate Holds Steady: Retail vacancy remained at 4.5%, unchanged year-over-year.
- Asking Rents Increase: Average asking rent reached $1.69/SF per month, a 4.06% increase year-over-year.
- Construction Pipeline Expands: Space under construction surged to 3,292,057 SF, up 21.3% from last year.
- Deliveries & Absorption: Q4 deliveries totaled 429,295 SF, while net absorption hit 534,433 SF, a 172.9% increase year-over-year.
- Significant Sales Activity: Notable transactions included Mesa Shores at $353/SF and Major Anchor at $650/SF, reflecting strong investor interest.
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