2022 Market Summary
Metro Phoenix Multi-Tenant Shopping Centers (10,000–100,000 SF)
Rein Retail Report • Mark Rein • Rein & Grossoehme
The 2022 market recorded 126 sales totaling $913.7 million and 4.07 million square feet. Average sale price rose to $7.25 million (range $775,000 to $24 million), average size was 32,333 SF, and average price per square foot climbed to $251.59. Cap rates compressed to an average of 6.34 percent (4.00–9.01 percent), occupancy held at 88.4 percent, and average rent per foot increased to $20.24. Transaction count was nearly flat with 2021, while total volume and pricing both moved higher.
Compared with 2021, the number of sales declined only 3 percent, yet total volume rose 12 percent and price per square foot increased 9 percent. Cap rates moved lower even as the Federal Reserve began its aggressive rate-hike cycle in 2022. Higher-quality assets continued to attract capital and tighter yields despite the rising cost of debt. The spread between long-term commercial mortgage rates and cap rates began to narrow as rates rose, which started to limit positive leverage for some buyers.
Overall, 2022 showed remarkable resilience. Volume stayed strong, pricing reached new highs, and occupancy remained solid even as interest rates moved sharply higher. The market demonstrated that well-located, well-leased centers could still command premium pricing in a rising-rate environment.
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