Commercial Lease Cost in Arizona
Updated July 2026 · Arizona commercial real estate rates
Calculate Commercial Lease Cost in Arizona
Commercial Lease Rates in Arizona
| Space Type | /sqft/yr | 1,000 sqft/mo | National |
|---|---|---|---|
| Office A | $58.20 | $4,850 | $60/sqft |
| Office B | $27.16 | $2,263 | $28/sqft |
| Retail Prime | $33.95 | $2,829 | $35/sqft |
| Retail Secondary | $17.46 | $1,455 | $18/sqft |
| Warehouse | $11.64 | $970 | $12/sqft |
| Industrial | $9.70 | $808 | $10/sqft |
Commercial Real Estate in Arizona
Arizona commercial rates are growing rapidly but remain below West Coast markets. Phoenix Scottsdale Class A office runs $28–$45/sqft/yr; the Tempe/ASU corridor is popular with tech tenants. Phoenix industrial and warehouse space near PHX airport runs $10–$16/sqft/yr, surging with Sun Belt population growth and e-commerce distribution demand.
Key Lease Terms to Understand
- • NNN: Tenant pays base rent + property taxes + insurance + maintenance
- • CAM charges: Common area maintenance; add $3–$8/sqft/yr typically
- • Rent escalations: Typically 2–4% annually built into lease
- • TI allowance: Tenant improvement allowance from landlord for build-out
- • Personal guarantee: Landlords often require for small businesses
Negotiation Tips
- • Get a tenant's broker — they're paid by the landlord, not you
- • Negotiate free rent periods (1–3 months is common in soft markets)
- • Push for higher TI allowance vs. lower rent
- • Include a subletting clause for flexibility
True Total Occupancy Cost in Arizona — NNN Lease
NNN leases list only base rent — but total occupancy cost includes CAM charges, utilities, and insurance. Here's the real annual cost for 1,000 sqft in Arizona.
| Space Type | Base Rent/yr | +CAM/yr | Total/yr |
|---|---|---|---|
| Office A | $58,200 | +$4,850 | $63,050 |
| Office B | $27,160 | +$4,850 | $32,010 |
| Retail Prime | $33,950 | +$3,880 | $37,830 |
| Retail Secondary | $17,460 | +$3,880 | $21,340 |
| Warehouse | $11,640 | +$1,455 | $13,095 |
| Industrial | $9,700 | +$1,455 | $11,155 |
Based on 1,000 sqft. CAM includes property tax, insurance, and maintenance pass-throughs. 3-year total assumes 3.5% annual escalation. Add utilities ($1.50–$3.50/sqft/yr) for full occupancy cost.
Find Commercial Space in Arizona
Connect with commercial real estate brokers and search available spaces in Arizona.
Search Commercial Space →