AZRE | AZBigMedia
The Greater Phoenix industrial real estate market remains healthy, despite business conditions during the pandemic, according to a report from Colliers International. America’s growth in online purchasing is driving expanded demand for warehouse/distribution space.
Net absorption of industrial space peaked at more than two million square feet in the second quarter. This marks the fifth consecutive quarter with net absorption exceeding one million square feet. Year-to-date the market has posted 3.7 million square feet of positive net absorption. Net absorption was dominated by warehouse space in the Southeast and Southwest areas. During the quarter, Lucid Motors committed to 479,207 square feet of space in Tempe. Additionally, Amazon signed a lease for 164,486 square feet in Chandler. Leasing activity slowed significantly in April as the nation paused and evaluated effects of the Coronavirus, but virtual tours and tenant interest picked up again in May and June.