Phoenix Industrial Figures Q3 2026

In Q3 2026, market fundamentals remained healthy. New supply delivered during the quarter slightly outpaced demand, which increased vacancy by just 10 basis points (bps) to 9.7%. Despite the quarterly uptick, vacancy has declined 150 bps over the past year. Availability fell 130 bps year-over-year and 30 bps quarter-over-quarter, reflecting tenants' continued expansion and space commitments. Average asking rents increased 9.0% from Q3 2025, while net absorption totaled 1.59 million sq. ft., marking another quarter of positive tenant demand. Overall market vacancy has fallen 300 bps from its recent peak of 12.7% in Q1 2025.