Phoenix Industrial Figures Q2 2026

In Q2 2026, the industrial market recorded net absorption of 4.7 million sq. ft. Net absorption was 7.7% lower than in Q1 2026 but 7.5% higher than in Q2 2025. Vacancy in Q2 2026 was 9.6%, and when compared with Q1 2026, vacancy declined quarter-over-quarter by 70 bps. Compared with Q2 2025, vacancy declined year-over-year by 260 bps. Average asking rent in Q2 2026 was $1.09 per sq. ft. with quarter-over-quarter growth of 2.8% from Q1 2026 in response to a decreasing vacancy rate. Rent rose year-over-year by 0.9% as the market increased its absorption of its new supply. Space under construction in Q2 2026 totaled 18.4 million sq. ft. This represented a quarter-over-quarter increase of roughly 4.4 million sq. ft. From Q2 2023, the construction pipeline contracted by about 30.4 million sq. ft. Over the last three years, cumulative net absorption reached 47.7 million sq. ft., the highest it has ever been as Phoenix continues to grow into a Tier 1 market. Over the same period, new deliveries totaled 77.5 million sq. ft. The peak level of space under construction during this span was 48.8 million sq. ft. Large tenant momentum continued in the Southwest Valley as DHL signed a new lease for about 1.2 million sq. ft. and Fluidstack signed two leases for a combined 1.2 million sq. ft. in the same submarket. As a group, these three transactions accounted for about2.4million sq. ft. of new leasing.