2023 Market Summary
Metro Phoenix Multi-Tenant Shopping Centers (10,000–100,000 SF)
Rein Retail Report • Mark Rein • Rein & Grossoehme
The 2023 market recorded 76 sales totaling $579.9 million and 2.59 million square feet. Average sale price was $7.63 million (range $1 million to $36 million), average size was 34,140 SF, and average price per square foot was $222.70. Cap rates averaged 6.47 percent (2.22–8.80 percent), occupancy improved to 92.5 percent, and average rent per foot rose to $23.86. Transaction count, volume, and square footage all declined from the strong 2022 levels as higher interest rates took hold.
Compared with 2022, the number of sales fell 40 percent, total volume dropped 37 percent, and total square footage declined 36 percent. Price per square foot moved lower while cap rates expanded modestly. The Federal Reserve kept rates elevated throughout 2023. As the cost of capital remained high, cap rates widened slightly—the expected relationship. The spread between long-term commercial mortgage rates and cap rates stayed tight, which reduced positive leverage and contributed to the drop in transaction volume.
Overall, 2023 was a year of adjustment. Volume retreated, but occupancy and rents continued to strengthen. The centers that did trade still commanded solid pricing, showing that quality product remained in demand even in a higher-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