By Kelsi Maree Borland for GlobeSt.com
The Phoenix industrial market has found its perfect balance. The market has one of the most active new construction pipelines in the nation for industrial product, but the development isn’t in danger of surpassing demand.
“The most remarkable factor of the Phoenix Industrial Market has been consistency,” Cooper Fratt, SVP at CBRE, tells GlobeSt.com. “Each year, beginning in 2016, Phoenix has seen between 9.5MSF and 10MSF of annual net absorption and between 17MSF and 18MSF of annual gross absorption. This trend has held true through the first three quarters of 2019 and we expect this activity to continue through 2020.”
New entrants into the market are driving the strong industrial absorption. These companies include Nike, Microsoft, Chewy and Daimler, all of which have moved into the market this year. “Due to the tightening supply of developable Industrial land in many of the market’s traditional industrial submarkets, we are starting to see Glendale, El Mirage and Surprise attract larger manufacturing and warehouse users,” says Fratt.
Population growth has also created more need for e-commerce-related facilities, including big box warehouses and distribution facilities.
Read more at GlobeSt.com.