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Phoenix Industrial Five Fast Facts | Q2 2023

Jeff Cooledge • 8/8/2023
Get insight into the latest commercial real estate key trends of the  Phoenix commercial real estate (CRE) industrial market.
  1. #7 Leasing in the Nation
    Phoenix outperformed most metros in the nation with 5.7 msf of new leasing in Q2 bringing the mid-year total to 9.8 msf. As a comparison, leasing activity in H1 2022 totaled 20.6 msf.

  2. Phoenix 2nd in the U.S. for Industrial Space Under Construction
    Phoenix ranked 2nd nationally in under construction activity at quarter-end with nearly 52 msf underway behind only Dallas with 69 msf underway.

  3. Southwest Valley Drives Industrial Demand
    The Southwest Valley continues to lead led the Phoenix industrial market in 2023 with 52.8% of new leasing, 96.5% of absorption and deliveries of 69.9% as the area enables companies to serve more than 40 million consumers within a single day’s truck haul.

  4. Slight Uptick in Vacancy Due to New Speculative Construction 
    With 3.8 msf in new deliveries, 48.5% of which remains available, direct vacancy increased by 20 basis points QOQ.

  5. Available Sublease Space Surges
    Phoenix recorded 2.4 msf of available sublease space across all product types in Q2, a 43.4%% increase QOQ.


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