KW Commercial Infinity Group

Phoenix commercial real estate continues to show a market in transition.

Office is stabilizing as tenant demand improves and new construction slows. Vacancy has moved down to 16.3%, with stronger activity in premium buildings and highly amenitized submarkets like Tempe, Scottsdale, and the Camelback Corridor.

Industrial remains healthy, though it is shifting from rapid expansion into a more balanced environment. Vacancy is now 11.7%, but long-term demand continues to be supported by logistics, manufacturing, semiconductor suppliers, and continued business migration into the Valley.

Multifamily is still working through a major wave of new supply. Vacancy has climbed to 11.8%, and rents are down 2.5% over the past year, but absorption remains strong and slowing construction starts should help the market rebalance over time.

Retail continues to be one of the strongest sectors in Phoenix. With vacancy at just 4.7%, limited new supply, population growth, and healthy tenant demand are keeping well-located centers competitive.

The big takeaway: Phoenix is not a one-size-fits-all market. Each asset class is moving differently, and understanding the details is what creates opportunity.

Look at the numbers:

May 2026 – Knowing the Numbers In Commercial Real Estate - Solex CRE Office Market The Phoenix office market continues to stabilize as improving tenant demand combines with a sharp slowdown in new construction and increased demolition of obsolete properties. Vacancy has improved […]

Arizona is at the center of one of the biggest commercial real estate debates right now: data centers.

Our newest article, The Data Center Dilemma, breaks down both sides of the conversation — from economic growth and job creation to concerns around water usage, power demand, and long-term community impact.

As investors, developers, and business owners, it’s critical to understand not just why data centers are coming here… but whether they truly benefit the markets we’re building in.

If you're active in CRE or considering your next investment move, this is a must-read.

Read the full article:

Data Center Dilemma - Solex CRE Top 5 Reasons For and Against the Push for Data Centers in Arizona Arizona is quickly becoming one of the hottest data center markets in the country. With AI expansion, […]

📊 March Market Snapshot: Knowing the Numbers in CRE

From industrial resilience and retail stabilization to evolving office demand and steady multifamily performance, this month’s data tells a story of a market recalibrating—not retreating. Industrial continues to anchor growth, retail is finding its footing with experiential demand, office is adapting to new workplace realities, and multifamily remains a consistent performer amid shifting demographics.

Understanding these trends isn’t just about tracking numbers—it’s about spotting where opportunity is forming next.

🔗 Dive deeper into the full breakdown:

March 2026 – Knowing the Numbers In Commercial Real Estate - Solex CRE Office Market The Phoenix office market has reached an inflection point as demand improved in 2025, pushing vacancy down slightly to 16.4% after several years of deterioration. Roughly 700,000 SF […]