Talk of a recession is in the air and it is expected that many businesses will be pulling back spending and expansions, but you couldn’t tell that by just looking at the Phoenix retail real estate market.
During the second quarter of 2022, the Valley’s retail sector saw its vacancy rate drop to 6.6% – the lowest it’s been since 2007, according to a research report from real estate firm Avison Young. Since 2006, the average vacancy rate in Phoenix has been 8.8%.
“The market overall is very active. There’s no real fear on the horizon for tenants,” said Matt Milinovich, a principal of Avison Young’s Phoenix office. “We haven’t seen a slowdown yet.”
In total, 866,491 square feet of retail space was absorbed during the second quarter, according to Avison Young’s report. Restaurants, stores, boutiques, gyms, and health and beauty services all rented retail spaces.