CBRE has released its Q3 industrial, office and retail figures for Phoenix.

For the industrial market, net absorption reached 6.4 million square feet in Q3 2025, marking the highest absorption since Q2 2022. Asking rates slightly decreased to $1.07 NNN per sq. ft., less than a 1% decrease QoQ. Vacancy continued to decline with a 90-bps drop, the first consecutive QoQ decrease in vacancy since 2022.

Phoenix office figures showed Phoenix experienced 212,669 square feet of positive net absorption in Q3 2025. The vacancy rate dropped 30 basis points, finishing at 21.8%. The average full-service gross direct asking lease rate increased 0.9% year-over-year to $31.73 per sq. ft.

For the retail sector, new deliveries totaled 269,621 square feet, while 1,229,718 square feet remained under construction. The Phoenix retail sector recorded 358,329 square feet of positive net absorption and 1,506,969 square feet of gross absorption in Q3 2025.

Vacancy decreased by 10 basis points (bps) to 5.1% in Q3 2025.