Phoenix Industrial Setting Year-over-Year Records

Credit: Glassdoor

By Kidder Mathews and AZBEX Staff 

The Phoenix Industrial market continued to set records in the Second Quarter, with the Kidder Mathews Phoenix Industrial CRE Market Update reporting record highs in net absorption, rental rates and construction activity, and record lows in vacancy rates. 

There is currently 23.5MSF of construction underway in the area, fueled largely by the pandemic-related surge in e-commerce, and net absorption hit a high of 5.9MSF. 

Triple-net rental rates surged to a new high of $0.66/SF, placing Phoenix among the top 15 markets for rent growth, but allowing it to maintain favorable affordability compared with California. 

In the near-term, Industrial in Phoenix is set to outperform last year’s record performance due to a strong economy and high demand. In addition to distribution and logistics, data centers and manufacturing are also experiencing significant strength. (Source) 

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