Phoenix Industrial Market Posts Record Results

The Greater Phoenix industrial market posted its strongest quarter on record for industrial property investment sales, according to a report released by Colliers. Net absorption during first quarter was more than three and a half times the 1.38 million square feet of new supply delivered during the period, pushing vacancy down to 9.2 percent. 

Investment activity posted its strongest quarter on record with $990.8 million in total sales volume, highlighting Phoenix’ position as the country’s top industrial market.

Net absorption reached 4.81 million square feet in 2026, which is the strongest quarter since first quarter 2023. Net absorption exceeded delivery of new supply for the second consecutive quarter, marking a rebalancing of the industrial market.

Vacancy fell for the fourth consecutive quarter, declining each quarter since peaking at 11.2 percent in first quarter 2025.

The construction pipeline is gaining momentum, with building activity rising to 14.3 million square feet in first quarter 2026.