Over the past 12 months, the Phoenix industrial market recorded 17.5 million SF of net absorption, compared to an average of about 8 million SF per year from 2015 to 2019. Builders, meanwhile, completed a record 27.3 million SF over the past year, contributing to an increase in the metro-wide vacancy rate from a near all-time low of 4.2% in 23Q1 to 6.6% in 23Q3.
The area’s broad range of demand drivers provides a powerful long-term tailwind for the industrial sector. Not only has Phoenix established itself as a prominent link in national supply chains, but it also has tremendous momentum in terms of advanced manufacturing. TSMC and Intel are underway on several multi-billion dollar semiconductor fabrication plants, helping transform Phoenix into a nation-leading hub for chipmaking. Estimates from government officials indicate that up to 45 other companies that supply or support these projects could relocate to the Valley as a result. Continue reading by clicking on the full report below!
