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