The Greater Phoenix industrial market continued improving during the first quarter of 2018, though net absorption has lagged behind 2017 levels. The remainder of 2018 will be a time of tenant move-ins and construction activity.
Net absorption reached almost 1.2 million square feet in the first quarter, marking the seventh straight quarter of net absorption exceeding one million square feet. Several large leases are scheduled for move-in this year, including the 800,000-square-foot build-to-suit facility for online pet retailer, Chewy.com. An increase in spec inventory will likely generate additional leasing volume. Experts indicate that improvement in the housing market will drive additional demand for industrial space.