Phoenix has one of the most active commercial real estate markets in the United States. Driven by a decade of population growth, a massive wave of semiconductor and advanced manufacturing investment, and the ongoing migration of California and northeast businesses to the Arizona market, Phoenix’s commercial real estate environment offers both significant opportunity and meaningful complexity for entrepreneurs navigating it for the first time. This guide covers the essential landscape of commercial real estate in Phoenix — from understanding the key submarkets to working with top CRE brokers to structuring a lease or purchase that protects your business.
Phoenix Commercial Real Estate Submarkets
Phoenix’s commercial real estate market spans a massive geographic area. Understanding the major submarkets is essential for making informed real estate decisions.
Camelback Corridor and Biltmore
The Camelback Corridor is Phoenix’s premier office submarket, home to the city’s highest concentration of financial services, insurance, wealth management, and professional services firms. Class A office space in this corridor commands the highest rents in the Phoenix metro and offers the most prestigious business addresses. The Biltmore area immediately to the east extends this dynamic, adding resort and hospitality real estate to the mix.
Downtown Phoenix
Downtown Phoenix has undergone significant revitalization over the past decade, driven by ASU’s downtown campus expansion, light rail investment, and the growth of creative, technology, and government sector employers. Office rents in Downtown Phoenix are generally lower than the Camelback Corridor, making it an accessible option for startups and creative firms that want an urban address. New mixed-use development has added modern Class A office product to a submarket that previously skewed toward older inventory.
Tempe
Tempe is the technology and innovation hub of the Phoenix metro, anchored by Arizona State University and a growing cluster of technology companies, biotech firms, and financial technology businesses. Office and flex space in Tempe is in high demand, with rents reflecting the area’s status as one of the Valley’s most desirable commercial locations. The light rail connection to Downtown Phoenix and Sky Harbor Airport makes Tempe especially practical for businesses with frequent business travel needs.
Scottsdale
Scottsdale’s commercial market divides into several distinct zones. Old Town Scottsdale is home to a concentration of boutique offices, creative agencies, and hospitality businesses. The Kierland and Scottsdale Quarter corridors house major retail tenants and corporate offices. North Scottsdale along the Loop 101 Freeway corridor offers Class A office buildings and corporate campuses at competitive rates relative to Camelback, attracting technology, finance, and healthcare companies.
Loop 101 Technology Corridor (Chandler and Gilbert)
The Loop 101 corridor extending into Chandler and Gilbert has become the semiconductor and advanced manufacturing heart of the Phoenix metro. TSMC, Intel, Microchip Technology, and dozens of supporting suppliers and service companies have established operations here. Industrial and flex space in this corridor is among the tightest in the market, with vacancy rates at historic lows driven by the CHIPS Act investment wave.
West Phoenix and Goodyear
West Phoenix and the western suburban communities including Goodyear and Avondale have become major industrial and logistics hubs. Distribution centers, e-commerce fulfillment operations, and light manufacturing businesses have targeted this corridor for its freeway access, available land, and relatively affordable industrial rents compared to the east valley.
Top Commercial Real Estate Brokers in Phoenix
CBRE Phoenix
CBRE maintains one of the strongest commercial real estate platforms in Phoenix, with a large team covering office, industrial, retail, investment sales, and tenant representation. For Phoenix businesses seeking large office relocations, sale-leaseback transactions, or investment property acquisitions, CBRE’s national platform and deep local market knowledge provide significant advantages.
JLL Phoenix
JLL’s Phoenix office provides a full range of commercial real estate services including tenant representation, property management, project management, and capital markets advisory. JLL is particularly active in the Phoenix industrial market, where their logistics and distribution expertise is in high demand given the market’s e-commerce and semiconductor-driven growth.
Colliers International Arizona
Colliers International has a large Phoenix team with strong practices in office tenant representation, industrial leasing, and retail real estate. Colliers is well-known in the Phoenix market for connecting growing businesses with space solutions that match their growth trajectory rather than just their immediate footprint need.
Lee and Associates Arizona
Lee and Associates is a national commercial real estate firm with a particularly strong Phoenix industrial practice. Their focus on industrial and flex space transactions makes them a natural partner for Phoenix-area manufacturing, distribution, and technology businesses seeking warehouse or production space in the Valley.
Cushman and Wakefield Phoenix
Cushman and Wakefield’s Phoenix team provides office tenant representation, investment sales, and capital markets services. The firm is well-positioned for businesses relocating from California and other high-cost markets to Phoenix, with experience handling the transition logistics that come with market-entry real estate decisions.
Leasing vs. Buying Commercial Space in Phoenix
When to Lease
Most Phoenix entrepreneurs start by leasing commercial space. Leasing preserves capital for business operations, provides flexibility to scale up or relocate as the business grows, and avoids the obligation of property ownership during the early stages of a venture. Triple-net leases are common in Phoenix commercial real estate — understand the full cost structure including base rent, CAM charges, insurance, and property taxes before signing.
When to Buy
Purchasing commercial real estate in Phoenix makes strategic sense for established businesses with stable space requirements and sufficient capital for a down payment. Phoenix commercial property values have appreciated significantly over the past decade, and owner-occupied commercial real estate provides both business stability and long-term wealth creation. SBA 504 loans are a popular financing tool for Phoenix business owners buying commercial properties with as little as 10% down.
Phoenix Commercial Real Estate Market Outlook
Phoenix’s commercial real estate fundamentals remain strong. Population growth continues to drive demand across all asset classes. The semiconductor manufacturing wave is creating unprecedented industrial demand in the east valley corridor. Multifamily development remains active despite interest rate pressure. Office demand is evolving, with a flight to quality driving strong performance for Class A spaces while older inventory faces challenges from hybrid work trends.
For entrepreneurs making real estate decisions in Phoenix today, engaging an experienced tenant representation broker — at no cost to the tenant in most cases — is essential. The Phoenix market moves quickly, and having a professional advocate who understands current availability, market rents, and landlord negotiating positions can save significant money and time.
See the full Doing Business in Phoenix guide for more resources on setting up and growing your Phoenix business.
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