2019 Year End Market Summary
Metro Phoenix Multi-Tenant Shopping Centers (10,000–100,000 SF)
Rein Retail Report • Mark Rein • Rein & Grossoehme
The 2019 market recorded 82 sales totaling $465.2 million and 2.81 million square feet. Average sale price was $5.67 million (range $750,000 to $16.5 million), average size was 34,259 SF, and average price per square foot rose to $194.37. Cap rates averaged 7.26 percent (5.25–10.62 percent), occupancy held at 83.5 percent, and average rent per foot increased to $15.66. Transaction count and total volume both declined from 2018, while pricing and rents continued to improve.
Compared with 2018, the number of sales fell 14 percent, total volume dropped 13 percent, and total square footage declined 15 percent. Price per square foot rose 7 percent and cap rates moved slightly lower. The Federal Reserve paused its rate-hike cycle in 2019 and began cutting rates later in the year. As interest rates eased, cap rates followed modestly lower—the expected relationship. The spread between long-term commercial mortgage rates and cap rates remained functional for most buyers.
Overall, 2019 was a more selective year. Fewer centers traded, but those that did achieved higher prices per foot and slightly tighter yields. Occupancy remained solid and rents continued to climb, setting a constructive foundation heading into 2020.
Refer to the Rein Retail Report for more data & statistics.
Data source: CoStar. Sales of multi-tenant shopping centers from 10,000 to 100,000 sq. ft.
Mark Rein • Selling Shopping Centers Since 1981
480.214.9414 • Mark@RGcre.com