Phoenix’s available retail space over-indexes to older buildings and lower-income areas

The Phoenix retail market is near the tightest level in recent memory as strong demographics, healthy income growth and steady job gains fuel robust underlying tenant demand. These drivers, along with minimal supply additions, have compressed the availability rate for existing properties to just 4.6% as of October, near the lowest rate since at least 2006 and well below the high-7% range seen entering the COVID-19 pandemic.