Commercial Real Estate Market in Phoenix, AZ
Updated monthly: sale, lease, property records, location trend, and more… · Last update: September 30
3,062 active listings and 28,580 off-market properties in Phoenix, AZ. Commercial property asks $3/SF to buy and $20.88/SF/Yr to lease. Office vacancy runs 26.5%, the loosest of the segments tracked here.
Market Trends
Phoenix, AZ spans 542.7 square miles in Maricopa County, Arizona. Figures below refresh monthly; last updated 30 September 2026.
Office
Office space in Phoenix, AZ asks $20.14/SF/Yr to lease. Vacancy runs 26.5% in 2025, up from 14.4% in 2019. Down from a 2024 peak of 28.5%.
Average Lease Price $/SF/Yr
Listings
Vacancy Rate %
Retail
Retail space in Phoenix, AZ asks $29.48/SF/Yr to lease. Vacancy runs 5.3% in 2025, down from 8.5% in 2019. Down from a 2020 peak of 8.7%.
Average Lease Price $/SF/Yr
Listings
Vacancy Rate %
Industrial
Industrial vacancy in Phoenix, AZ runs 12.7% in 2025, up from 6.8% in 2019. Nearly 2.9x the 2022 low of 4.4%.
Vacancy Rate %
Multifamily
Multifamily vacancy in Phoenix, AZ runs 8.6% across the West region in 2025, up from 7% in 2022.
Vacancy Rate % in West region
Zoning & Land Use
Land Use Mix share of zoned land by category
- Residential 72.8%
- Industrial 10%
- Commercial 8.3%
- Planned_development 5.3%
- Special 0.2%
- Mixed use 0.2%
Largest Zones share of zoned land by district
Single Family Residence
Ranch Or Farm Residence
Single Family Residence
Single Family Residence
Single Family Residence
Phoenix, AZ zones 332,728 acres across 73 districts. Commercial zoning covers 8.3% of zoned land, residential 72.8% and industrial 10%. The largest single district is Single Family Residence at 17.5%. For commercial buyers the practical constraint is that only 18.3% of land carries a commercial or industrial designation.
Single Family Residence (R1-6)
The purpose of R1-6 is to foster the creation of living areas which can assist the establishment of stable, functional neighborhoods and an established pattern of living in this metropolitan area reflects a tradition of single family occupied dwellings which also emphasize outdoor living
Market overview
Demographics & Economy
Phoenix, AZ has 1,453,040 residents in 587,821 households. Density runs 2,678 people per square mile. Median household income here is $76,620 and median gross rent $1,500 a month.
1,453,040
Population
587,821
Households
2.5
Avg Household Size
35
Median Age
30%
College-Educated
83%
High-School Grad
542.7 sq mi
ZIP Area
2,678
Density / Sq Mi
$76,620
Median Household Income
$45,616
Median Earnings
$1,500
Median Rent
$382,523
Median Home Value
Tools
Nearby Markets
| Market | Average Sale Price, $/SF | Average Lease Price, $/SF/Yr |
|---|---|---|
| Tempe | — | $19.83 |
| Guadalupe | — | — |
| Glendale | — | $25.75 |
| Paradise Valley | — | — |
Commercial property in Phoenix, AZ asks $3/SF.
Frequently Asked Questions
What is the average price per square foot for commercial property in Phoenix?
Commercial property in Phoenix, AZ asks an average of $3 per square foot. The 7 most recent recorded sales traded at a median of $248/SF.
How much does it cost to lease commercial space in Phoenix?
Asking lease rates in Phoenix, AZ average $20.88 per square foot per year. Office asks $20.14/SF/Yr as of Q2 26, little changed from $20.45/SF/Yr in Q1 26.
What is the office vacancy rate in Phoenix?
Office vacancy in Phoenix, AZ is 26.5% as of 2025, up from 14.4% in 2019. Retail vacancy is 5.3%, below Office vacancy.
Which property type has the lowest vacancy in Phoenix?
Retail has the lowest vacancy in Phoenix, AZ at 5.3%, inside a 5.1–8.7% band since 2019. For comparison: office 26.5%, industrial 12.7% and multifamily 8.6% (West).
What zoning applies to commercial property in Phoenix?
Phoenix, AZ zones 332,728 acres across 73 districts, of which 8.3% is commercial and 10% industrial. The largest single district is Single Family Residence at 17.5% of zoned land. The purpose of R1-6 is to foster the creation of living areas which can assist the establishment of stable, functional neighborhoods and an established pattern of living in this metropolitan area reflects a tradition of single family occupied dwellings which also emphasize outdoor living Residential zoning covers 72.8% and open space 0%.
Where does Realmo's Phoenix market data come from?
Realmo compiles Phoenix, AZ figures from 7 recent recorded sales, 1,711 active sale listings, 1,351 active lease listings, 28,580 tracked off-market properties, the current Phoenix zoning release. Sale and lease figures refresh monthly; vacancy annually. Last updated 30 September 2026.
Methodology & data sources
- Asking prices and averages
- Computed from 1,711 active for-sale and 1,351 active for-lease listings in Phoenix, AZ. These are ASKING figures from live listings, not closed-transaction prices, and a segment carried by a handful of listings reads as indicative rather than an average.
- Vacancy rates
- Published per-sector market series, taken at the metro level where one exists and otherwise at the Census-region level — a chart reading "in <region> region" is a regional number, not this city's.
- Zoning and land use
- The current municipal zoning release: 332,728 zoned acres across 73 districts. Shares are of zoned land, so parcels the release leaves unclassified are excluded from the mix.
- Refresh
- The monthly aggregates close at the end of the previous month, so 30 September 2026 — not today — is the honest last update.
- Known limitations
- multifamily vacancy is reported at West region level.
- Coverage
- Metrics below the 10-observation threshold fall back one geographic level. The geography used is named on each figure.
Compiled by the Realmo Data team · reviewed 30 September 2026 · report a data issue
