Retail is Thriving Throughout Greater Phoenix and Across Arizona
In spite of supply chain issues and inflationary pressure, retail is thriving throughout the greater Phoenix market and in key markets across the state. Arizona is experiencing the third-fastest pandemic jobs recovery in the nation with the employment rate back to pre-pandemic levels, according to James DeCremer, principal of Avison Young.
“Unemployment is currently coming in at 5.7 percent, which is down from 6.2 percent in 2020,” says DeCremer. “Additionally, the state’s September 2021 jobs report showed 20,400 new jobs added.”
Two more key fundamentals that signal retail sector strength are vacancy and rental rates. Vacancy is very low, closing out third quarter 2021 at 7.8 percent (from 8.2 percent Y-O-Y) and should continue to drop, while rental rates are on the rise, especially in anchored shopping centers.
“Ultimately, as people from California and other states choose to locate to the Phoenix area, retailers, landlords and investors see Phoenix as a strategic and solid place to transact. We see that continuing,” says DeCremer.