Phoenix Places Second for 2023 Industrial Growth
Nationally, more than 690 million square feet of industrial supply is under construction. A recent Commercial Edge survey said, that’s up from last year’s previous all-time high of 592 million square feet, so industrial development is still accelerating with positive indicators such as higher last-year leases compared to in-place leases as well as record low vacancies.
The high-flying Phoenix market is poised to deliver the second most industrial space nationally. Only Dallas will do more. Phoenix comes in with 52 million square feet under construction. This marks a further acceleration in the metro’s rapid industrial expansion as the new deliveries will supplement the Valley of the Sun’s industrial inventory by 15.3%. Furthermore, the survey said the city’s status as a regional logistics hub — in addition to spillover demand from southern California and the popularity of build-to-suit warehouses — means that the new supply is likely to be occupied with steadily climbing rents and vacancies around 3.2%.