• Following a strong 2018, positive momentum in the Phoenix industrial market carried into the second quarter of 2019.
  • Industrial users were active across the Valley and became increasingly diverse. Manufacturing, third-party logistics, pharmaceutical, e-commerce, and food and beverage users are particularly active in the metro.
  • Net absorption totaled 1.1M sq. ft. in the second quarter with 3.4M sq. ft. of gross activity.
  • At mid-year net absorption is 4.1M sq. ft. with gross activity of 8.0M sq. ft.
  • The Phoenix industrial vacancy was 6.5% in Q2 2019, down 10 bps when compared to Q4 2018.
  • The market-wide average asking lease rate in Q2 2019 was $0.64 NNN per sq. ft. asking rates are up slightly from Q4 2019 and remained static over the last twelve months.
  • In Q2 2019, 2.2M sq. ft. of industrial product delivered in the Phoenix market, with 81.8% dedicated to speculative space.
  • Currently, 9.0M sq. ft. of industrial space is underway across the market.  Distribution space across the market accounts for 55% of all space under construction or 4.9M sq. ft.