Dylan Sproul provides an abstract on the Metro Phoenix Industrial/Land Development Markets during the start of 2022. Click on the link below for the full Industrial Newsletter!
1Q2022 Metro Phoenix Industrial Newsletter
Dylan Sproul, Advisor;
“The Q1 2022 Phoenix industrial data shows no signs of slowing down. Development and investment activity are at historic heights and there seems to be a new normal for Phoenix Industrial pricing. Vacancy is continuing the downward trend causing Phoenix to be ranked as #3 nationwide for 5 year rent growth which is currently pegged at 39.3%. That said, industrial construction is at a historic high, leading the nation right behind Dallas with 36.4M SF of space under construction. Some might venture to say there is overbuilding, but if you look beyond the numbers and dive a little deeper – due to current construction delays, backlogged city municipalities, tenant demand, and the consistent absorption in the Phoenix market we have quite a healthy supply pipeline coming online. That all said, there is still great demand from users and investors alike looking to place capital in the Phoenix industrial market. There will continue to be fierce competition from institutional capital on forward sales, Class A stabilized investments, and sale-leasebacks. While many private investors and smaller funds continue to focus on older Class B product and “value add” opportunities. “