CBRE has released its reports on the Industrial and Office markets’ Phoenix-area activity in the Fourth Quarter.
Industrial saw a decrease in quarter-over-quarter vacancies from 6.1 percent to 6.0 percent. During Q4 there were 5.09MSF of net absorption and 8.04MSF of gross absorption. Net absorption for the year was 13.1MSF, the highest ever in Phoenix. Gross absorption came in at 23.7MSF.
Phoenix Industrial construction also set records. 4.7MSF was delivered in Q4, bringing completions for the year to 13.3MSF. Currently, there is 11.1MSF under construction and another nearly 16MSF planned across 74 buildings.
On the office side, quarter-over-quarter vacancy increased to 17.4 percent. Absorption fell 326KSF in Q4. Year-end net absorption was -1.05MSF, the lowest ever recorded. There is currently 2.3MSF under construction in the area, with pre-leased space accounting for 38 percent of the total. (Source)