Commercial Lease Cost in Arizona
Calculate your true total occupancy cost in Arizona — base rent, NNN/CAM, escalation, TI, and more.
Commercial Real Estate in Arizona
Phoenix-Scottsdale Class A office runs $28–$45/sqft/yr, with the Tempe/ASU corridor popular among tech tenants. Sun Belt population growth drives strong demand. Industrial and warehouse space near PHX airport runs $10–$16/sqft/yr, surging with e-commerce distribution needs.
Key Market Facts — Arizona
Commercial Lease Rates in Arizona
| Space Type | Base Rate | +NNN | National |
|---|---|---|---|
| Class A Office | $53.35/sqft | +$14 | $55 |
| Class B/C Office | $27.16/sqft | +$10 | $28 |
| Retail (Prime) | $38.8/sqft | +$12 | $40 |
| Retail (Secondary) | $21.34/sqft | +$8 | $22 |
| Restaurant | $27.16/sqft | +$10 | $28 |
| Medical Office | $31.04/sqft | +$12 | $32 |
| Warehouse / Distribution | $9.7/sqft | +$4 | $10 |
| Industrial / Flex | $11.64/sqft | +$5 | $12 |
| Flex Space | $15.52/sqft | +$6 | $16 |
| Showroom | $19.4/sqft | +$7 | $20 |
| Mixed Use | $24.25/sqft | +$9 | $25 |
Base rates adjusted for Arizona market. NNN costs are additional for triple-net leases. Monthly calculated on 1,000 sqft at base rate only. Sources: CBRE Q2 2026, JLL, BOMA.
Key Lease Terms to Know
- NNN (Triple Net): Tenant pays base rent + property taxes + insurance + CAM. Most common for retail and industrial in Arizona.
- CAM Charges: Common area maintenance — lobbies, parking, landscaping, elevators. Typically $3–$10/sqft/yr.
- Rent Escalation: Most Arizona commercial leases include 2–4% annual increases.
- TI Allowance: Landlord contribution for tenant buildout. Negotiate aggressively — this is one of the most flexible lease terms.
- Load Factor: The difference between usable and rentable SF (typically 10–20%). You pay rent on the larger number.
- Personal Guarantee: Landlords often require personal guarantees for small business tenants in Arizona.
Negotiation Tips for Arizona Tenants
Paid by the landlord, not you. Can save 10–20% on total lease cost through better terms.
1–3 months free rent is common, especially in markets with elevated vacancy rates.
Push for higher TI allowance rather than lower rent. It reduces your upfront cash needs.
Request a 3–5% annual cap on NNN increases to protect against unexpected cost spikes.
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Frequently Asked Questions
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Methodology & Data Sources
This calculator uses market estimates compiled from CBRE U.S. Real Estate Market Outlook (Q2 2026), JLL U.S. Office Statistics (Q1 2026), Cushman & Wakefield MarketBeat Reports, BOMA Experience Exchange Report 2025, and Bureau of Labor Statistics CPI data.
State-level rates are estimated using a cost multiplier that adjusts national base rates for Arizona. All calculations are deterministic. Escalation is applied annually. NNN costs escalate at the lesser of the base rent escalation rate or 5%. Effective rent includes all concessions and one-time costs.
Market rate data is provided as planning estimates, not exact quotes. Actual rates depend on building class, specific location, market conditions, and negotiation. Always verify with a licensed commercial real estate broker.
Calculator version: 2026.1 · Last updated: June 2026 · CostPrism.com