Phoenix Commercial Real Estate Briefing — Q3 2026

Higher interest rates and elevated energy costs are shifting the balance of leverage in Phoenix commercial real estate — and the tenant's position is changing with it.

Refinancing and construction costs move with interest rates, so higher borrowing costs raise the price of commercial real estate debt. That tends to restrain new construction, pressure refinancings, and slow transactions. Fewer new buildings tightens the future supply of quality space, while assets under refinancing stress can create repositioning opportunities.

For tenants, the near-term balance on commodity and second-generation space continues to favor the occupier, while leverage on new and premium space is harder to hold. The practical question is how these forces land on a specific building, submarket, and lease-expiration timeline.

Maris Advisors represents tenants and occupiers exclusively — never landlords. The full Phoenix Business Climate Briefing breaks these forces down sector by sector, across office, industrial, retail, and medical office.

Request the full briefing through the reports section of our site. Maris Advisors is an informational resource; occupiers confer with their own financial, tax, and legal advisors on any decision.

Macro Event

The Federal Reserve raised its benchmark rate a quarter point, to a 3.75%–4.00% target range — its first increase after a run of cuts.

National Shift

The ten-year Treasury yield has pushed toward 5%, lifting the cost of commercial mortgages and reshaping capitalization rates.

Phoenix Effect

Near-term leverage on commodity and second-generation space still favors tenants; new and premium space is tighter.

Local Intelligence

Brent crude has held above $100 on Middle East supply disruption; Phoenix semiconductor and data-center demand keeps pressure on power and land.

IMPORTANT DISCLAIMER: This report is prepared exclusively by Maris Advisors for general informational purposes only and does not constitute legal, financial, investment, or real estate advice. All market statistics, projections, and commentary represent an aggregation of publicly reported data from multiple third-party sources and reflect Maris Advisors' independent analysis and interpretation. Data has not been independently verified and may contain errors, omissions, or differences from other published sources. Market conditions change rapidly — figures presented herein reflect conditions as of Q2 2026 and may not reflect current conditions at the time of reading. No representation or warranty, express or implied, is made as to the accuracy, completeness, or reliability of any information contained herein. This report should not be relied upon as the sole basis for any leasing, purchasing, investment, or business decision. Readers are strongly encouraged to contact Maris Advisors directly to obtain current, specific market intelligence applicable to their individual situation, requirements, and objectives before taking any action. Past market performance is not indicative of future results. Maris Advisors is a licensed Arizona commercial real estate broker. © Maris Advisors. All rights reserved. | sbordley@marisadvisors.com | 480-625-9059