Phoenix Industrial: Still on Solid Footing
Though 2016 was not a so-called “standout” year for Phoenix’s industrial sector, it did finish out the year with what Lee & Associates’ analysts called “a solid foundation with modest momentum moving into 2017.”
Colliers International’s Greater Phoenix Industrial Q4 2016 report also showed optimism, nothing that “activity in the Greater Phoenix industrial market picked up during the fourth quarter.”
On the numbers side, Colliers’ researchers reported a 10.2% vacancy rate (down 30 basis points from Q4 2015); net absorption of 2.3 million square feet and asking rent of $0.55 per square foot, a 3.6% increase from the same period the year before. New construction totaled 642,000, with approximately four million square feet under construction.
Lee & Associates’ Phoenix office indicated a similar vacancy rate, at 10.2%. Overall Q4 rental rate averages stood at $0.56, with net absorption for the quarter of 2.3 million. Construction activity was at 2.5 million square feet.
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