By AZ Big Media
To say that 2022 was a good year for commercial real estate brokers in Metro Phoenix is an understatement. And looking at some of the deals closed by the top commercial real estate producers of 2022 supports that understatement.
The Phoenix industrial real estate market, already one of the strongest in the U.S., closed a very robust 2022, as rent rates continued to increase, more space was added to the construction pipeline, and vacancy remained low, according to research from Transwestern Real Estate Services.
In nine Phoenix submarkets, industrial inventory totaled 293.5 million square feet of space as of the close of 2022. The market has an additional 56 million square feet of industrial space in construction, a figure that is dwarfed by the 108 million square feet of proposed space. Average rents increased approximately 20% year-over-year across all submarkets to $11.84 per square foot. Absorption for the quarter totaled 4.8 million square feet, bringing the year-to-date total to 22.8 million square feet.
“I’m not sure ‘on an absolute tear’ is a proper research term, but it has become difficult to come up with superlatives on how hot the Phoenix industrial market has been over the past year,” says Jennifer Barili, senior research analyst for Transwestern. “The market continues to grow and shows no sign of stopping. For example, last quarter there was 40 million square feet of industrial space under construction market-wide and this quarter there is more than that in the West Valley submarket alone.”
