By Roland Murphy for AZBEX – BEXCLUSIVE
While the Industrial construction market cools, catches its breath, takes a pause, returns to sanity or whatever other cliché one might want to tag the news with, Phoenix continues to lead the nation in terms of supply pipeline for the sector.
The February 2024 National Industrial Report from Yardi-Matrix shows the U.S. has nearly 424.5MSF of Industrial stock under construction. Phoenix accounts for 41.6MSF of that space. Dallas is the next closest market with 28.6MSF.
Phoenix’s Under Construction segment accounts for 10.9% of the Industrial stock. If Under Construction and Planned space are combined, that number rises to 28.7%. The next closest market is Kansas City, which has an Under Construction + Planned percentage of 17.2.
Industrial rents in Phoenix fell in the upper-middle of the national range, with the January 2024 average coming in at $8.49, an 8.6% year-over-year increase. The local vacancy rate is 3.7%.
California continues to have the nation’s highest rents, with Orange County reporting $14.95, Los Angeles at $13.95, and the Bay Area at $12.99. In the East, Miami leads at $11.04. The lowest rent in the major markets Yardi tracks was Memphis, which reported $3.86. The national average is $7.74.