06/16/2026
Phoenix commercial real estate continues to show a market in transition.
Office is stabilizing as tenant demand improves and new construction slows. Vacancy has moved down to 16.3%, with stronger activity in premium buildings and highly amenitized submarkets like Tempe, Scottsdale, and the Camelback Corridor.
Industrial remains healthy, though it is shifting from rapid expansion into a more balanced environment. Vacancy is now 11.7%, but long-term demand continues to be supported by logistics, manufacturing, semiconductor suppliers, and continued business migration into the Valley.
Multifamily is still working through a major wave of new supply. Vacancy has climbed to 11.8%, and rents are down 2.5% over the past year, but absorption remains strong and slowing construction starts should help the market rebalance over time.
Retail continues to be one of the strongest sectors in Phoenix. With vacancy at just 4.7%, limited new supply, population growth, and healthy tenant demand are keeping well-located centers competitive.
The big takeaway: Phoenix is not a one-size-fits-all market. Each asset class is moving differently, and understanding the details is what creates opportunity.
Look at the numbers:
Office Market The Phoenix office market continues to stabilize as improving tenant demand combines with a sharp slowdown in new construction and increased demolition of obsolete properties. Vacancy has improved […]