Phoenix Places Second for 2023 Industrial Growth

Nationally, more than 690 million square feet of industrial supply is under construction. A recent Commercial Edge survey said, that’s up from last year’s previous all-time high of 592 million square feet, so industrial development is still accelerating with positive indicators such as higher last-year leases compared to in-place leases as well as record low ... The post Phoenix Places Second for 2023 Industrial Growth appeared first on Connect CRE.

Phoenix Places Second for 2023 Industrial Growth

Nationally, more than 690 million square feet of industrial supply is under construction. A recent Commercial Edge survey said, that’s up from last year’s previous all-time high of 592 million square feet, so industrial development is still accelerating with positive indicators such as higher last-year leases compared to in-place leases as well as record low vacancies.

The high-flying Phoenix market is poised to deliver the second most industrial space nationally. Only Dallas will do more. Phoenix comes in with 52 million square feet under construction. This marks a further acceleration in the metro’s rapid industrial expansion as the new deliveries will supplement the Valley of the Sun’s industrial inventory by 15.3%. Furthermore, the survey said the city’s status as a regional logistics hub — in addition to spillover demand from southern California and the popularity of build-to-suit warehouses — means that the new supply is likely to be occupied with steadily climbing rents and vacancies around 3.2%.

The post Phoenix Places Second for 2023 Industrial Growth appeared first on Connect CRE.

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