By AZRE | AZ Big Media
The Greater Phoenix industrial real estate market set several records during third quarter, according to a report released by Colliers in Arizona. The city’s booming industrial sector posted its highest net absorption, lowest vacancy and largest amount of space under construction at any one time.
Greater Phoenix is ranked 2nd nationally for job creation, just behind Dallas-Ft. Worth. The city has grown 11.2 percent from 2010-2020 and now surpassed Philadelphia to become the 5th largest city in the nation.
During third quarter the industrial market was more active than at any point in its history, landing 7.2 million square feet of positive net absorption. This marks the 10th consecutive quarter of absorption exceeding 1 million square feet. Year-to-date net absorption totals an impressive 18.2 million square feet. During the first three quarters of 2021, the market topped 2020 performance by 36 percent and is on a path to surpass 20 million square feet by year-end. Mattress manufacturer MLILY expanded its footprint in the West Valley by committing to 1.25 million square feet t G303. Toy manufacturer Funko committed to 862,602 square feet at 10 West Commerce Park in Buckeye. Electric vehicle manufacturers are entering the Greater Phoenix marketplace. Zero Electric Vehicles leased 103,275 square feet at Gilbert Crossings in July and KORE POWER, a battery company, announced plans to develop a manufacturing facility in Buckeye.
