Phoenix & Glendale Retail Market Report
Glendale Market Overview
Glendale, AZ, is known for State Farm Stadium, home of the Arizona Cardinals football team. The submarket also contains the Arrowhead Towne Center shopping mall. Glendale’s strategic location provides easy access to the greater Phoenix area, making it an attractive place to live and work. General retail is the most prominent subtype within Glendale, with 4.4 million square feet in this category.
Glendale Market Performance
Investors have shown notable activity in Glendale’s capital markets, positioning it as one of the most extensively traded submarkets in the region in recent years.
The current vacancy rate in Glendale’s retail submarket stands at 4.5%, reflecting a 0.5% decrease over the last 12 months. During this period, there has been an absorption of 216,000 square feet, while 156,000 square feet of new retail space has been delivered. Current rents in the area are approximately $22.00 per square foot, marking a 9.4% rise year-over-year. Over the past three years, there has been a cumulative rent increase of 25.1%. About 110,000 square feet are under construction, indicating a 1.0% expansion of the existing inventory.
In the last 12 months, 38 sales transactions have occurred, with an average price of $220 per square foot. The estimated overall value for the submarket is $231 per square foot. Over the past three years, a total of 171 sales have taken place, amounting to approximately $315 million in transactions. The market cap rate for Glendale stands at 6.6%, slightly below its trailing three-year average of 6.8%.
By The Numbers | Last 12 Months | Source: CoStar Group
- Vacancy Rate: 4.5%
- Rent Growth: 9.4%
- Deliveries SF: 156K
- Net Absorption SF: 216K
- Sales Volume: $75M
North Phoenix Market Overview
With a blend of urban amenities and natural beauty, North Phoenix continues to attract individuals and families seeking a balance between city life and the desert landscape. Neighborhood centers are the largest subtype within this submarket, with 6.5 million square feet in the category.
North Phoenix Market Performance
The retail submarket in North Phoenix along the I-17 corridor currently has a vacancy rate of 7.5%, showing a 3% decrease in the last 12 months. In this timeframe, 502,000 square feet of space has been absorbed, while 1,100 square feet of new space has been delivered. Rental rates are currently at $18.10 per square foot, and over the past three years, there has been a cumulative 23.7% rise in rents. Construction is underway for approximately 3,600 square feet. In the last 12 months, there have been 45 sales with an average price of $210 per square foot. The estimated value for the entire submarket is $203 per square foot.
The yearly sales volume has averaged $109 million over the last five years, reaching a peak of $213 million within a 12-month period during that timeframe.
By The Numbers | Last 12 Months | Source: CoStar Group
- Vacancy Rate: 7.5%
- Rent Growth: 9.5%
- Deliveries SF: 1.1K
- Net Absorption SF: 502K
- Sales Volume: $75.6M
