What Is Fair Market Rent in Scottsdale, Phoenix, Chandler, and Tempe?

When companies evaluate new leases or renewals across Arizona, a key benchmark is fair market rent Phoenix and its neighboring markets—such as Scottsdale, Chandler, and Tempe. Understanding what constitutes fair market rent helps occupiers negotiate with confidence, benchmark alternatives, and avoid overpaying. For occupiers of office, warehouse, manufacturing, medical, or retail space, it’s essential to align rental commitments with market reality.
Defining Fair Market Rent

Fair market rent Phoenix refers to the rate a willing tenant would pay and a willing landlord would accept for comparable space in the open market, given current market conditions, without undue pressure on either side. It takes into account lease term, asset class, location quality, tenant improvements, and property type.

It’s not simply the quoted “asking rent”—it also reflects concessions, build-out allowances, escalation terms, and other lease economics.

Recent Market Benchmarks in the Phoenix Region

For example, recent data in the Phoenix/Scottsdale region provides useful reference points:

• In the broader Phoenix office market, the average asking rent for Class A space was approximately $32.91 per square foot in 2024.
• Further, a 2025 Q2 report for Greater Phoenix showed asking office lease rates around $29.78 per square foot in one data set.
• Vacancy levels remain elevated in some segments: for example, the office vacancy rate in Phoenix was about 23.6% in Q3 2025.
• While these numbers are office-specific, they set a baseline for fair market rent discussions and trends across other property types.

For warehouse and manufacturing space in the region, vacancy and base rent conditions vary more widely. The region’s strong industrial growth gives a different context to fair market rent for logistics. Similarly, for medical and retail space in Scottsdale or Tempe, fair market rents must reflect specialized build-out needs, tenant-improvement allowances, and shorter lease terms.

How Occupiers Use Fair Market Rent in Negotiation

Occupiers analyzing fair market rent Phoenix should:

• Benchmark their current or proposed rate against recent comparable deals in Scottsdale, Chandler, Tempe, and Phoenix proper.
• Factor in asset class differences: a medical office near a hospital campus will command a premium above standard office space.
• Adjust for concessions: high tenant improvement allowances or free-rent periods effectively lower the net rent.
• Consider broader portfolio implications: for a company with multi-market exposure or warehouse/manufacturing footprint, alignment with regional wage growth, power infrastructure, and logistics must inform the fair market rent calculation.

How Keyser Helps

As a global, AI-enabled advisery firm, Keyser has the tools and reach to assess fair market rent Phoenix and its adjacent markets in depth. With over 600 professionals and international partners, Keyser applies proprietary market analytics and artificial intelligence to evaluate lease economics across all property types—office, warehouse, manufacturing, medical, and retail.

Keyser’s conflict-free occupier-only model ensures that benchmarking and advice are fully aligned with tenant interests—no landlord side conflicts. The firm helps tenants quantify fair market rent, negotiate better terms, identify hidden costs, and structure leases that reflect business strategy, not simply market averages.

In Summary

Whether you’re renewing in Tempe, relocating to Chandler, expanding into Scottsdale, or optimizing your Phoenix footprint, understanding fair market rent Phoenix—and how it differs by asset class—is essential. With insights into local benchmarks, concessions, and lease terms across office, warehouse, manufacturing, medical, and retail, you can negotiate smarter.

Let Keyser guide you through the data, the strategy, and the decision-making process—so your next lease reflects true market value and aligns with your business goals.

Frequently Asked Questions: 

Q: What does “fair market rent” mean in Phoenix, Scottsdale, Chandler, and Tempe?

A: Fair market rent is the rate a tenant would reasonably expect to pay for comparable commercial space in the same submarket, based on current supply, demand, concessions, asset quality, and recent lease transactions.

Q: How can I determine if the rent I’m being offered is truly “fair market” in these Arizona submarkets?

A: Compare the proposed rate to recent comps in your specific submarket, evaluate Class A vs. Class B differences, analyze concessions such as TI allowances or free rent, and work with a tenant-only advisor who can interpret real-time market data without landlord conflicts.

Q: What current market trends impact fair market rent across the Phoenix metro area?

A: High vacancy rates, shifts in office demand, landlord competition, and evolving incentives (like increased TI packages) all influence fair market rent in Scottsdale, Phoenix, Chandler, and Tempe, often giving tenants more leverage in negotiations.