The retail sector has been hard hit by the recession, but Phoenix is pulling through. The market had positive net absorption in the third quarter, driven largely by activity from big-box retailers. According to a report from Colliers International, Phoenix posted 101,270 square feet in absorption during third quarter; however, the vacancy rate grew slightly to 7.7%.

"Big box anchor tenants are driving the positive activity in Phoenix, particularly in build to suits opportunities," Phillip Hernandez, research manager at Colliers International, tells GlobeSt.com. "Currently of all retail product under construction there is only 6 percent of available space, with large commitments from grocery stores and gym tenants."

Grocery retailers largely led this activity, including Costco, Safeway and Sprouts, as well as Fry's Marketplace. "[These retailers] represent four of the five largest retail deliveries in 2020, predominately on the outskirts of town, being fed by the continued sprawl both in the east and west valley," says Hernandez.