By Real Estate Daily News
PHOENIX, ARIZONA – The Greater Phoenix industrial market is setting records in many categories. Construction of new projects has hit a historic record with approximately 19.1 million square feet currently being built. Colliers in Arizona also reports that net absorption of industrial space has pushed vacancy rates to 5.9 percent, the lowest ever achieved in the market.
Arizona’s economy is booming and experiencing record revenue growth, as well as personal income growth. From 2019-2020 Arizona led the nation (tied with Montana) in the category of largest personal income growth by posting a 7.1 percent increase.
The Greater Phoenix industrial market brought 3.6 million square feet of new product to the market during second quarter. These new projects were completed with vacancy of just 45.4 percent. Sixteen buildings were completed during second quarter and five of those were fully leased when delivered. This strong leasing activity illustrates the rapid change of supply chain and ecommerce activity in our city. New projects totaling 5.0 million square feet of new construction were started during the past three months. Approximately 73 percent of the 19.1 million square feet currently underway in the Valley are located in the Northwest and Southwest submarket clusters. The Cube, a 1.2 million-square-foot speculative warehouse was started last quarter along the Loop 303 corridor at Northern Avenue and Reems Road. The Southeast Valley experienced a groundbreaking of its first speculative warehouse project exceeding more than one million square feet. The Marwest Capital project called Elliot 202 is located on the northwest corner of Loop 202 and Elliott Road.
