Phoenix Retail Market Report
Retailers Follow Workers;
Sky High Retail Sales Aid Record Net Absorption
New consumers prompt leasing. Only five other major metros are welcoming households at a quicker rate than Phoenix, leading to a bevy of home decor and furniture store leases. American Furniture Warehouse signed on to fill roughly 150,000 square feet in Midtown, its third Phoenix location. Additionally, high levels of population growth and in-migration are sparking necessity-based leasing around The Valley, with Sprouts and Dollar Tree both adding space. The hardest-hit industries during the pandemic are also showing strong space demand, with gyms and sit-down eateries expanding as well. Retail sales growth above 32 percent during the health crisis led 2021 to break local net absorption records, and suggests Phoenix will remain an expansion-friendly environment for retailers.