Q1 2022 Retail Market
The Greater Phoenix Retail market ended the first quarter with the same momentum experienced at year end 2021, with positive net absorption reaching 577,308 square feet. Strong leasing activity has led the market to a decrease in vacancy of 110 bps year-over-year ending at 6.6 percent. 187,526 square feet of new inventory were delivered in the first quarter. Asking rates reached $15.61 per square foot, an increase of 5.8 percent compared first quarter of 2021.
Key Takeaways
Outlook
In the month of March, the number of restaurants that opened outpaced the number of closings by 19 percent. At the end of February 2022, consumer spending has increased by 10.7 percent and retail spending increased 29.5 percent compared to January 2020 throughout the entire Phoenix MSA. The healthy growth of the Phoenix retail market will continue throughout the year as the market benefits from population growth and new manufacturing companies entering the market.
Key Takeaways
- Construction nearly doubles in Q1 with 998,732 SF underway
- Vacancy declined to record level of 6.6 percent
- Rental rates increased 5.8 percent Y-o-Y to $15.61 PSF
Outlook
In the month of March, the number of restaurants that opened outpaced the number of closings by 19 percent. At the end of February 2022, consumer spending has increased by 10.7 percent and retail spending increased 29.5 percent compared to January 2020 throughout the entire Phoenix MSA. The healthy growth of the Phoenix retail market will continue throughout the year as the market benefits from population growth and new manufacturing companies entering the market.
