Marcus & Millichap Releases New Single-Tenant Retail Reports as Industry Gathers at ICSC Las Vegas

(May 20, 2026) – Marcus & Millichap (NYSE: MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services has published two new national research reports highlighting continued strength in the U.S. single-tenant net-lease (STNL) retail sector as retail real estate professionals gather at the ICSC Las Vegas conference.

The reports, Single-Tenant Net Lease Retail 1H/26 National Report and the May 2026 U.S. Single-Tenant Net-Lease Retail Investment Report, found that STNL retail transaction activity rose sharply in 2025, with transaction count up 23% year over year and dollar volume increasing 20%. The reports also note that vacancies remain below long-term averages while construction activity is near historic lows.

“Despite ongoing economic uncertainty, investor demand for high-quality net-lease retail assets remains exceptionally strong,” said Gregory A. LaBerge, chief client officer, Marcus & Millichap. “Retailers focused on necessity, convenience and value continue to expand, supporting long-term fundamentals across the sector.”

ICSC Las Vegas

According to the reports, private investors accounted for approximately 75% of buyer dollar volume in STNL retail transactions, while investors continue to favor assets with strong tenant credit and long-term lease structures.

“The reset and recovery in the single-tenant market continues despite macroeconomic headwinds and higher-than-expected interest rates,” said Hessam Nadji, president and chief executive officer, Marcus & Millichap. “Prices have recalibrated while financing conditions have improved, fueling more activity. More buyers see a compelling acquisition window, driven by a meaningful gap to replacement cost and limited new development. As a result, realistically priced assets attract multiple offers.”

Marcus & Millichap professionals are attending ICSC Las Vegas and are available at Booth #4307Q, Las Vegas Convention Center, to discuss current retail investment trends and opportunities. The full STNL research reports are available here: Single-Tenant Net Lease Retail 1H/26 National Report and May 2026 U.S. Single-Tenant Net-Lease Retail Investment Report.

Colliers: Strong Leasing and Inventory Reductions Fuel Phoenix Office Market Health

Market Posted Second Consecutive Quarter of Positive Net Absorption

Phoenix (May 19, 2026) – A recent Colliers report covering the first quarter of 2026 shows positive net absorption for a second consecutive quarter. The Greater Phoenix office market continues its post-pandemic recovery with strong leasing and a decline in total inventory as obsolete buildings are re-purposed.

The Phoenix market is experiencing tremendous economic growth from manufacturing and technology, which is now spilling over into the office market. Strong leasing activity, along with the delivery of Republic Services’ 265,525-square-foot new headquarters, helped first quarter post the second strongest net absorption in nearly four years. First quarter net absorption reached 432,379 square feet. The Tempe submarket dominated the leasing activity in the first three months of 2026, accounting for nearly 35 percent of total square footage leased. Class A assets recorded 498,865 square feet of positive net absorption market-wide, while both Class B and Class C assets posted negative totals.

Direct vacancy dropped 60 basis points over the quarter to 14.5 percent. This was influenced by the removal of nearly 1 million square feet of inventory. Class A properties saw a 40 basis point decline in vacancy to 19.1 percent. For the first time in nine consecutive quarters, sublease space increased. A modest 33,178 square feet of sublease space was added, yet sublease space has decreased 36.7 percent since its peak of 7.8 million square feet in first quarter of 2024.

Total inventory of office space has been declining, as developers move forward with re-purposing obsolete office buildings to meet market needs. Three buildings traded in the first quarter 2026 to developers planning new usage.

Construction levels in the office market decreased to the lowest level, with just 184,500 square feet under way within two buildings. Both structures are build-to-suit developments with deliveries expected over the next two quarters. Limited available capital for speculative office development, coupled with the rental rates required to achieve acceptable investment returns, continues to suppress new construction.

Overall rental rates posted a small increase in first quarter, rising 1.33 percent to $30.52 per square foot. Class A assets recorded the largest year-over-year gain, rising 1.41 percent to $34.60 per square foot. The market is highly bifurcated, with Class A significantly outperforming Class B and Class C properties. Premier submarkets with highly amenitized Class A properties captured the strongest year over year rent growth. Camelback Corridor rents rose 6.3 percent to $44.79 per square foot, while South Scottsdale rents increased 4.1 percent to $41.16 per square foot. Two leases signed during first quarter set a new high watermark for the market, with starting rates exceeding $62.00 per square foot.

Sales volume declined 33.3 percent from fourth quarter 2025, but increased 53.7 percent year-over-year, reaching $353 million. This is still a 53.7 percent better performance than first quarter 2025. The average price per square foot paid during first quarter 2026 was $207. Tempe submarket led the quarter in sales activity, experiencing more than 30 percent of the total volume across seven transactions. The largest transaction of the quarter was the five-property “Rio West” portfolio totaling 296, 663 square feet that sold for $61.5 million. The largest single-asset sale was Thirty 03 (3003 N. Central Ave.), a 26-story Midtown tower that sold for $32.25 million. Three buildings sold during first quarter are slated for repurposing, which will remove more than 335,000 square feet from the existing inventory when they are placed under construction.

The Greater Phoenix office market continues its path to rebalancing. The push for employees to return to the office is more prevalent and is expected to strengthen as 2026 unfolds. While certain submarkets will continue outperforming others, the environment creates opportunities for tenants to secure space in lower performing areas at discounted rates. Strong support from economic development groups and general pro-business elements of our market are positioning us to attract out-of-state companies, particularly those seeking business-friendly regulations and partnerships with higher education institutions to sustain a robust labor force.

Full report here.

U of A innovation drives $459.7M in annual economic impact Tech Launch Arizona

TUCSON, AZ (May 19, 2026) — A new independent economic impact analysis finds that Tech Launch Arizona, the University of Arizona’s office for commercialization and innovation, generated $459.7 million in economic output and supported 3,070 jobs statewide in fiscal year 2025, underscoring the university’s growing role as an engine of Arizona’s economy.

According to the report, in fiscal year 2025, running from July 1, 2024, to June 30, 2025, Tech Launch Arizona and TLA-linked activities generated $159.8 million in labor income and $16.8 million in state, county, and municipal tax revenues. Compared with fiscal year 2021, TLA’s economic impact grew by approximately 20% across all measured categories, including jobs, labor income, economic output, and tax revenue.

TLA is a unit of the U of A Office for Research and Partnerships charged with translating university research into real-world impact. The office works with faculty, staff, and researchers to protect intellectual property, license technologies to industry partners, and launch startups that bring university innovations to market, ranging from medical devices and cancer therapies to optics, cybersecurity, and advanced software.

“We work with innovations across the university, drawing from every research area and discipline,” said Doug Hockstad, associate vice president of TLA. “With the expansive research portfolio of the U of A, it’s a huge, rewarding job.”

Hockstad says that TLA’s ultimate goal is to make the U of A one of the top universities in the nation for technology commercialization, also known as “tech transfer,” which can impact economies and improve lives.

“Achieving that takes a strong and connected ecosystem that brings together university innovators, a community of technology and business experts, and entrepreneurs and investors to help us map out the best pathway forward for each invention,” he said. “This report is evidence that the ecosystem we’re growing is strong and we’re on our way toward our goals of impact and leadership.”

“At the University of Arizona, we measure the success of our billion-dollar research enterprise not just by the discoveries made in our labs, but by the tangible benefits that translating those discoveries into innovations brings to the people of Arizona,” said Tomás Díaz de la Rubia, senior vice president for research and partnerships. “This report confirms that our commitment to innovation and partnerships is a powerful economic driver. By translating world-class research into new companies and high-wage jobs, we are ensuring that Arizona remains a leader in the global innovation economy.”

Over a decade of growing impact

In addition to last year’s impact numbers, the report compares TLA’s impact across two extended time periods. It looks back over the nine fiscal years spanning July 1, 2017, through June 30, 2025, and ahead to the projected impact for the next five fiscal years from 2026 through 2030.

The top findings for the past nine years show that TLA activities generated:

$3.3 billion in economic output
$1.2 billion in labor income
$122.2 million in tax revenues

Over the upcoming five years, those numbers are projected to be:

$2.46 billion in economic output
$855.5 million in labor income
$90 million in tax revenues

In addition to the dollar-value impacts, the report describes how TLA’s activities indirectly stimulate demand for supporting products and services.

“We’ve studied the impact of TLA’s commercialization activities for many years, and the impact is clear and undeniable – these efforts are having a huge impact on our community and will continue to do so well into the future,” said Jim Rounds, president of Rounds Consulting Group, who co-authored the report.

Understanding the calculations

The analysis, conducted by Rounds Consulting Group, examines the direct, indirect, and induced economic effects of Tech Launch Arizona’s activities, including startup formation, technology licensing, and office operations. These effects measure not only jobs and revenue generated directly through commercialization, but also broader ripple effects across Arizona’s economy. View the report for a complete methodology breakdown.

“We’re excited to be able to share this news with the people of Arizona,” Hockstad said. “We want everyone to share the understanding that the research and development going on here is truly benefiting people everywhere. The more we tell that story, the more fuel we’ll have to power Arizona innovation and impact.”