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Phoenix Retail Benefits From Job Gains and Industrial
Expansions, Despite Select Vacancy Upticks
The market remains resilient amid shifting vacancy trends. The metro should stay in the top 10 markets nationally for job growth, while its fourth-ranked population expansion in 2024 continues to drive consumer demand. Despite closures from 99 Cents Only, Conn’s Home Plus and Big Lots, vacancy is still below the long-term average. North Phoenix and North Scottsdale saw vacancy decline in 2024. Benefiting from affordability and freeway connectivity, the former areas also posted rent gains exceeding 10 percent and improved multi-tenant occupancy. At the same time, large-scale manufacturing investments — Intel’s CHIPS Act-backed expansion, Pentagon Technologies’ $50 million Mesa facility and SEALSQ’s Phoenix base — are bolstering employment and retail spending power. While vacancy did increase in the East Valley and West Phoenix in 2024, a well-leased construction pipeline should help Phoenix retain its reputation as one of the nation’s more resilient markets.