Phoenix Ranks Among Top Markets with Largest Number of Industrial Leases during the First Half of 2024

Phoenix ranks sixth nationally among the markets with the largest share of the top 100 industrial leases in the first half of 2024, according to a new report from CBRE.

Phoenix had five of the top 100 largest leases, totaling 4.6 million sq. ft. Three of the five leases were signed by e-commerce businesses, with manufacturing companies and third-party logistics operators each garnering one new lease apiece. The Valley tied with Atlanta in the number of leases during the year's first half of 2024.

"Phoenix continues to be a significant player in the industrial sector," said Cooper Fratt, senior vice president at CBRE. "In addition to the three major e-commerce leases this year, manufacturing and 3PLs reflect our city's growing economic dynamism."

National trends

Nationally, occupiers signed leases for 31 megawarehouses, or those 1 million sq. ft. and above, in the U.S. in the first half, a 35% increase from the 24 recorded in last year’s first half. Meanwhile, an abundance of new supply in the 1 million-sq.-ft.-plus category contributed to first-year taking rents declining by 2.2% from 2023 levels. In contrast, lease rates for all sizes of warehouses increased by 7.7% in that timeframe.

CBRE outlines the megawarehouse leasing trends in its analysis of the largest 100 industrial & logistics leases of this year’s first half. The average size of leases in the largest 100 increased to 814,000 sq. ft. from 791,000 sq. ft. a year earlier.

Claiming the largest shares of the 100 leases were traditional retailers and wholesalers with 30, followed by 3PLs (29), e-commerce operators (14) and food & beverage companies (13). Third-party logistics providers handle clients’ warehouse and shipping operations on an outsourced basis.

Other top industrial leasing markets include:

Markets With Largest Share of Top 100 Industrial Leases of First Half of 2024