Phoenix, AZ Commercial Real Estate Market Trends & Data

What Are Current Commercial Real Estate Benchmarks in Phoenix?

Phoenix commercial properties are averaging $383 per square foot to buy and $582 per square foot to lease, with cap rates near 6.90% across asset types. The data below covers sale prices, lease rates, cap rates, and building sizes by property type to support early-stage market evaluation.

Explore Commercial Properties in Phoenix

Browse properties currently for sale or lease to see how local market pricing and building sizes translate into real opportunities.

Commercial Property For Sale in Phoenix

Commercial Property For Rent in Phoenix

Phoenix's Demographic Profile

Phoenix has 610,614 households and a median income of $70,283, providing context for rent absorption and tenant demand across retail and multifamily assets. A 7% five-year population trend is a key signal for evaluating long-term demand in this market.

Key Demographic Metrics	Value
Population	1,674,216
# Households	610,614
Median age	36
Median household income	$70,283
Avg household size	3
Renter-occupied housing units	280,273
5-year population change	7%

Commercial Real Estate Market Snapshot in Phoenix

Use the benchmarks below to set initial underwriting baselines for Phoenix, typical deal size, entry costs, and cap rate ranges by asset type before evaluating individual listings.

Key Market Metrics	Value
Avg asking sale price	$383 per SF
Avg asking lease rate	$582 per SF
Avg unit size for lease	22,375 SF
Avg building size for sale	26,670 SF
Average cap rate	6.90%

The 6.90% average cap rate reflects current return expectations relative to Phoenix pricing and deal scale. Use this alongside asking prices and lease rates to establish initial underwriting assumptions.

Commercial Properties For Sale In Phoenix

The listings below reflect how current market pricing and building scale translate into active opportunities available today.

For Sale

Eclipse Apartments

Phoenix, AZ 85051

60,040 SF Multifamily
$17,500,000

For Sale

Sanctuary On 22nd

Phoenix, AZ 85021

195,223 SF Multifamily
$95,000,000

For Sale

Palm Aire Apartments

Phoenix, AZ 85017

126,499 SF Multifamily
$45,000,000

For Sale

17 Commercial Assets

Price Upon Request

For Sale

Buildings A, B & C

Phoenix, AZ 85307

53,260 SF Industrial Building
$389,500 - $590,900

For Sale

Valle View at the Pointe

Phoenix, AZ 85020

4.76 AC Lot
1 Residential Income Lot
Price Upon Request

For Sale

MID CENTURY MODERN FLAGSHIP RAL

Phoenix, AZ 85014

7,713 SF Health Care Building
13.12% Cap Rate
$3,250,000

For Sale

7425 S 19th Ave

Phoenix, AZ 85041

1,915 SF Retail Building
6.27% Cap Rate
$2,950,000

Commercial Market Metrics by Property Type

Office Building Market Metrics Near Phoenix

Office market metrics highlight how pricing, typical deal size, and return expectations vary across submarkets, helping investors compare entry costs and yield potential efficiently.

Nearby Office Markets	Avg Cost/SF	Typical Size	Cap Max
Phoenix	$297	25,497 SF	8.43%
Glendale	$351	30,764 SF	7.75%
Peoria	$319	55,288 SF	8.40%
Tempe	$305	20,098 SF	8.00%
Surprise	$408	9,587 SF	7.50%

Industrial Property Market Metrics Near Phoenix

Industrial market data shows how cost per square foot and typical building size differ by submarket, supporting comparisons around deal scale and pricing alignment.

Nearby Industrial Markets	Avg Cost/SF	Typical Size	Cap Max
Phoenix	$302	29,155 SF	7.50%
Glendale	$317	50,862 SF	7.40%
Peoria	$310	29,612 SF	7.40%
Tempe	$302	16,103 SF	5.00%

Retail Property Market Metrics Near Phoenix

Retail pricing varies widely across nearby markets, making this comparison useful for identifying where cost per square foot and deal size diverge most.

Nearby Retail Markets	Avg Cost/SF	Typical Size
Phoenix	$417	21,603 SF
Glendale	$565	20,946 SF
Peoria	$444	10,171 SF
Tempe	$351	12,237 SF
Avondale	$416	29,775 SF

Multifamily Property Market Metrics Near Phoenix

Multifamily metrics show how pricing and building size relate to observed cap rate ranges, helping investors evaluate income potential relative to entry cost.

Nearby Multifamily Markets	Avg Cost/SF	Typical Size	Cap Max
Phoenix	$326	22,786 SF	9.44%
Glendale	$357	46,607 SF	6.44%
Tempe	$342	30,564 SF	6.47%
Mesa	$229	22,165 SF	6.01%
Scottsdale	$476	26,346 SF	6.01%

How Investors Evaluate Commercial Real Estate Markets in Phoenix

Use these tools to move from market-level signals to deal-level math. Each calculator helps translate Phoenix pricing, rents, and building size into concrete metrics like value, income, and space requirements, so you can validate assumptions before spending time on individual listings.

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Net Operating Income (NOI) Calculator

Calculating NOI and Understanding the Significance of This Metric in Commercial Real Estate Investment

Internal Rate of Return (IRR) Calculator

Use this calculator to measure annualized returns, compare investment scenarios, and evaluate risk across commercial real estate deals.

Cash on Cash Return

Learn How Cash on Cash Return Can Optimize Your Real Estate Investments

Debt Service Coverage Ratio (DSCR) Calculator

Assess Your Investment's Health in Seconds

Gross Rent Multiplier (GRM) Calculator & Investment Guide

Simplifying Your Investment Analysis

Land Loan Calculator

Use this calculator to estimate monthly payments, interest, and total financing costs for raw, unimproved, or improved land purchases.

Balloon Payment Calculator

Use this calculator to estimate monthly payments, total interest, and the final lump-sum balloon payment for commercial real estate loans.

Office Space Calculator

Estimate How Much Space Your Team Really Needs

Nearby Commercial Markets

Comparing nearby markets helps investors see whether Phoenix pricing and building scale sit above, below, or in line with surrounding areas.

Commercial Markets	Avg Cost/SF	Average Size
Phoenix	$383	26,670 SF
Glendale	$406	37,701 SF
El Mirage	$644	78,254 SF
Sun City	$664	12,557 SF
Peoria	$576	35,518 SF

Multifamily For Sale In Phoenix

Multifamily listings shown here connect market pricing and cap rate patterns with income-producing opportunities currently available.

For Sale

The Mark

Scottsdale, AZ 85251

123,407 SF Multifamily
$1,200,000

For Sale

Artisan Lofts on Central

Phoenix, AZ 85004

145,075 SF Multifamily
$889,000

For Sale

Tapestry on Central

Phoenix, AZ 85004

392,000 SF Multifamily
$549,060

For Sale

Tapestry on Central

Phoenix, AZ 85004

392,000 SF Multifamily
$375,000

For Sale

Tapestry on Central

Phoenix, AZ 85004

392,000 SF Multifamily
6.65% Cap Rate
$1,050,000

For Sale

Orpheum Lofts

Phoenix, AZ 85003

137,000 SF Multifamily
$750,000

For Sale

Alba Residences

Phoenix, AZ 85004

186,369 SF Multifamily
Price Upon Request

Regional Demographic Comparison

This comparison places Phoenix alongside nearby cities to show how population size, household counts, and income levels differ across the region. Viewing these markets side by side helps investors understand whether local demand and income characteristics are concentrated in Phoenix or distributed across surrounding areas.

City	Population	# Households	Age	MedianHouseholdIncome	AvgHouseholdSize	RenterOccupiedHousingUnits	FiveYrPopGrowthPct
Phoenix	1,674,216	610,614	36	$70,283	3	280,273	7%
Glendale	257,237	89,166	35	$64,916	3	40,273	7%
El Mirage	34,874	9,938	31	$69,610	3	3,263	6%
Sun City	43,881	26,656	74	$47,571	2	4,433	9%
Peoria	201,527	73,538	42	$89,658	3	17,991	8%

FAQs About Commercial Investing in Phoenix

View All Commercial Real Estate For Sale in Phoenix

Is Phoenix a good market for a first-time commercial real estate investor?

Phoenix offers commercial properties across a wide range of sizes and price points. By reviewing the market data and benchmarks on this page, first-time investors can better understand what a typical commercial property looks like before committing capital and narrowing in on specific listings.

How can this market data help me decide whether to buy commercial property for my business in Phoenix?

The pricing and size metrics on this page help business owners compare the cost of ownership against leasing in Phoenix. Typical building sizes and asking prices provide a starting point for evaluating space needs, budget fit, and long term occupancy costs before engaging lenders or brokers.

What should conservative investors focus on when evaluating commercial properties in Phoenix?

Conservative investors often prioritize manageable deal sizes, stable pricing ranges, and cap rate benchmarks shown for Phoenix. These metrics help assess whether current market conditions support steady income potential without relying on aggressive assumptions.

How does Phoenix compare to nearby commercial real estate markets?

Nearby market comparisons highlight differences in pricing, building scale, and cap rate ranges relative to Phoenix. Reviewing these side by side helps experienced investors identify relative value, pricing premiums, or alternative markets that may better align with return targets.

How can this page support early-stage deal screening for Phoenix acquisitions?

This page provides high-level benchmarks for pricing, deal size, and observed cap rates in Phoenix, which are useful for initial market filtering. Institutional and data-driven investors often use these signals to prioritize listings that meet size, pricing, and return thresholds before deeper underwriting.

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