Q2 2026 Phoenix Industrial Market Update
Phoenix’s industrial market showed signs of finding its footing in Q2 2026 as tenant demand continued to work through the region’s recent wave of new supply. Vacancy improved to 10.5% from 11.4% in Q1, while quarterly net absorption remained above 6.1 million square feet. Over the past 12 months, Phoenix recorded 23.3 million square feet of net absorption, outpacing 16.8 million square feet of new deliveries for the first time since 2022. Still, conditions vary widely by property type, with larger facilities facing higher vacancy while smaller industrial buildings remain comparatively tight.
The market is not done adjusting. More than 20 million square feet remains under construction, rent growth has moderated, and tenants have more options than during the post-pandemic expansion. At the same time, investment activity remains active, with $5.5 billion in industrial sales over the past year, while logistics and advanced manufacturing continue to support long-term demand. Explore our Q2 2026 Phoenix Industrial Newsletter below for the latest vacancy, rents, absorption, submarket performance, industrial condo trends, and notable sales and lease transactions shaping the market.
For a deeper dive into the evolving dynamics of the Phoenix Industrial market, including detailed projections and expert analyses, view the full newsletter below, where you can download and share additional insights.
