Phoenix Metro leads the Southwest in annualized rental rate growth
The Phoenix market area saw the highest growth rate amongst major metros throughout the Southwest at the close of 2018.
February 25, 2019
- The Phoenix market area saw the highest growth rate amongst major metros throughout the Southwest at the close of 2018, only being eclipsed by Tucson, AZ locking in 8.30% of annualized growth. Favorable growth rates and comparably low rental rates contributed to a record year, as Phoenix became the 11th largest Metropolitan area while attracting record investments, doubling 2017’s industrial sales activity.
- Phoenix’s year-over-year increase stems mainly from the West Valley, South Phoenix and Scottsdale areas, as both landlords and tenants are comfortably moving away from central areas.
- Southern Glendale leads the West Valley with 10.7 percent growth while still commanding competitive rental rates well below the Phoenix average at approximately $819. North Scottsdale trails just behind at 10.1 percent growth, attracting the highest average rental rate of the metro at $1,427. The lowest growth rates were more centralized, with Central Phoenix and North Tempe earning 5 and 4.1 percent growth rates, respectively.
- 2019 is expected to see comparable growth as Phoenix continues to be a leading labor market and living destination, fueling growth towards the rim of the metro.
Source: JLL Research, AXIO Metrics