Phoenix Ranks Among Top 10 Cities for Commercial Real Estate Investment in 2025

Phoenix has once again secured its place among the most desirable cities for commercial real estate investment, ranking #10 in CBRE’s 2025 U.S. Investor Intentions Survey. While the city slipped three spots from its previous ranking, it remains a top contender for investors looking to capitalize on pro-business environments, strong population growth, and high demand across various asset types.

Phoenix’s inclusion in the top 10 highlights its continued appeal within the Sun Belt markets, which are attracting significant interest due to their growth potential and investment opportunities. Alongside Phoenix, cities like Dallas, Miami, Atlanta, and Austin have emerged as prime targets for commercial real estate investors, thanks to their dynamic economies and expanding populations.

Why Phoenix Continues to Attract Commercial Real Estate Investors

Despite a slight dip in its ranking, Phoenix’s fundamentals remain strong, making it a key target for investors nationwide. The city’s business-friendly policies, strategic location, and booming population have created a robust environment for commercial real estate growth.

Charlie von Arentschildt, Senior Vice President for CBRE Capital Markets, emphasized Phoenix’s ongoing appeal, stating, “It comes as no surprise that Phoenix continues to rank as a top 10 market for investors. Our pro-growth, business-friendly policies are consistently recognized, placing Phoenix among the best-performing markets in the country. Demand for top-tier assets across all product types is particularly robust in the region.”

Phoenix’s office market exemplifies this demand. Opportunities to acquire Class A buildings in prime locations are highly limited, and when such properties do hit the market, they attract significant investor interest. This scarcity of premium assets has led many investors to focus on value-add strategies, repositioning well-located older properties to compete with the limited supply of trophy assets.

Key Trends Driving Investment in Phoenix

The CBRE 2025 U.S. Investor Intentions Survey revealed several key insights that highlight why Phoenix remains a hot spot for commercial real estate investment.

First, investor sentiment is overwhelmingly positive, with 70% of commercial real estate investors planning to acquire more assets in 2025. This optimism is driven by favorable pricing and the improving recovery of real estate fundamentals, particularly in Sun Belt markets like Phoenix.

Second, 75% of investors anticipate a rebound in their investment activity by the first half of the year, with more than half already experiencing recovery. This confidence is reflected in the types of properties investors are targeting, with a strong focus on multifamily (75%) and industrial and logistics assets (37%). There’s also a noticeable uptick in interest in retail and office properties, signaling a broader recovery across asset classes.

Finally, investors are adjusting their strategies to align with the evolving market cycle. Two-thirds of investors are favoring value-add and core-plus strategies, seeking opportunities that offer higher returns with lower risk. This strategic shift reflects a broader trend toward economic expansion and stability, even as challenges like volatile interest rates and higher operating costs remain top concerns.

Challenges and Opportunities in Phoenix’s Commercial Market

While the outlook for commercial real estate in Phoenix is largely positive, investors are navigating several challenges in 2025. Elevated and volatile long-term interest rates, higher operating costs, and an uncertain path for interest rates are among the top concerns cited by investors.

However, Phoenix’s resilient economy, diverse job market, and pro-business environment continue to provide a solid foundation for growth. The city’s ability to attract major corporations, tech companies, and logistics firms has created a steady demand for office spaces, industrial facilities, and multifamily housing.

For investors willing to adapt to the evolving market landscape, Phoenix offers significant opportunities to capitalize on its growth. Whether it’s through value-add strategies, acquiring multifamily properties, or investing in industrial developments, the city remains a top destination for commercial real estate in 2025.

What This Means for the Phoenix Metro Real Estate Market

Phoenix’s strong position in the commercial real estate market has ripple effects throughout the local economy and residential real estate sectors.

The influx of commercial investments brings job growth, increased demand for housing, and higher property values in surrounding neighborhoods. Areas near major commercial hubs, such as Downtown Phoenix, Tempe, Chandler, and Scottsdale, are seeing heightened interest from both residential buyers and real estate investors.

For those looking to invest in Phoenix real estate, whether commercial or residential, the city’s continued growth presents exciting opportunities.

Ready to Explore Investment Opportunities in Phoenix?

Whether you’re interested in commercial real estate, residential properties, or mixed-use developments, now is the time to capitalize on Phoenix’s dynamic market.

Let’s connect and explore how you can maximize your real estate investments in one of the country’s top-performing cities.📧 Email: jeff@conniecollagroup.com
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