Tempe is bolstering its position as a commercial real estate powerhouse, adding strong industrial absorption to its list of achievements, according to the Q3 2016 Phoenix Industrial Report released by the Phoenix office of JLL. Other market highlights include a resurgence of speculative development and a perceivable shift to smaller building construction.
According to JLL, Tempe currently leads the Valley in year-to-date industrial absorption outside of the West Valley, with 240,753 square feet of industrial space absorbed in the third quarter and 434,146 square feet absorbed year to date. In part, this is because Tempe has become a popular destination for small- to medium-sized industrial users who don’t fit into the big-boxes of the West Valley.
Like the tech tenants that have flocked to the City’s centrally located office space, a wave of nutraceutical companies have also taken advantage of Tempe’s Class A and B industrial product – product that is often unavailable on a smaller scale in the neighboring Airport submarket.
To read the full Q3 2016 Phoenix Industrial Report, visit the JLL Phoenix research page.