Phoenix, AZ Commercial Real Estate Market Trends & Data

What Are Current Commercial Real Estate Benchmarks in Phoenix?

Phoenix commercial properties are averaging $382 per square foot to buy and $692 per square foot to lease, with cap rates near 6.75% 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.

 

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 $382 per SF
Avg asking lease rate $692 per SF
Avg unit size for lease 14,314 SF
Avg building size for sale 24,102 SF
Average cap rate 6.75%

The 6.75% 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

Vacant Former Dental | Phoenix MSA

Glendale, AZ 85301

  • 3,270 SF Office Building
  • Auction Sale
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

Eclipse Apartments

Phoenix, AZ 85051

  • 60,040 SF Multifamily
  • $17,500,000
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

 

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 $302 23,347 SF 9.68%
Glendale $368 32,992 SF 7.75%
Peoria $318 48,450 SF 7.75%
Tempe $278 48,657 SF 8.00%
Surprise $430 6,035 SF 6.83%

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 $297 28,861 SF 9.68%
Glendale $325 83,067 SF 7.40%
Peoria $395 22,030 SF 7.40%
Tempe $300 20,990 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 $505 14,443 SF
Glendale $701 23,998 SF
Peoria $453 8,532 SF
Tempe $427 13,253 SF
Avondale $417 31,885 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 $333 24,997 SF 8.22%
Glendale $317 16,169 SF 6.46%
Tempe $598 22,777 SF 6.47%
Mesa $387 14,149 SF 6.47%
Scottsdale $454 17,364 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.
Commercial Property Valuation
Commercial Property Valuation
Understand Core Valuation Methods, Prevent Mistakes, and Use Our Instant Value Estimator
What Is a Cap Rate?
What Is a Cap Rate?
How To Calculate This Critical CRE Investment Metric and Why It Matters
Net Operating Income (NOI) Calculator
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
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
Cash on Cash Return
Learn How Cash on Cash Return Can Optimize Your Real Estate Investments
Debt Service Coverage Ratio (DSCR) Calculator
Debt Service Coverage Ratio (DSCR) Calculator
Assess Your Investment's Health in Seconds
Gross Rent Multiplier (GRM) Calculator & Investment Guide
Gross Rent Multiplier (GRM) Calculator & Investment Guide
Simplifying Your Investment Analysis
Land Loan Calculator
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
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
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 $382 24,102 SF
Glendale $419 45,073 SF
Paradise Valley $690 7,096 SF
Youngtown $216 15,714 SF
El Mirage $609 76,815 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

En Hance Park

Phoenix, AZ 85004

  • 59,000 SF Multifamily
  • $624,900
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%
Paradise Valley 14,357 5,392 53 $218,050 3 248 10%
Youngtown 7,240 2,709 38 $45,885 3 1,295 7%
El Mirage 34,874 9,938 31 $69,610 3 3,263 6%

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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