2024 Market Summary

Metro Phoenix Multi-Tenant Shopping Centers (10,000–100,000 SF)
Rein Retail Report • Mark Rein • Rein & Grossoehme

The 2024 market recorded 60 sales totaling $471.4 million and 2.13 million square feet. Average sale price was $7.86 million (range $1.065 million to $31.75 million), average size was 35,555 SF, and average price per square foot was $236.78. Cap rates averaged 6.84 percent (4.44–8.6 percent), occupancy held at 92.9 percent, and average rent per foot was $21.19. Transaction count and total volume declined from 2023, while pricing and occupancy remained resilient.

Compared with 2023, the number of sales fell 21 percent, total volume dropped 19 percent, and total square footage declined 18 percent. Price per square foot rose 5 percent and cap rates expanded 6 percent. Interest rates remained elevated for most of 2024 before the Federal Reserve began cutting late in the year. As the cost of capital stayed high through much of the year, cap rates moved wider—the expected relationship. The spread between long-term commercial mortgage rates and cap rates remained tight, which continued to limit positive leverage and kept overall transaction volume in check.

Overall, 2024 was another selective year. Fewer centers traded, but those that did achieved solid pricing and near-full occupancy. The market continued to favor quality, and the late-year rate cuts provided a more constructive backdrop for buyers and sellers heading into the next year.

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

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