Rents Will Eventually Moderate in Phoenix’s Strong Industrial Market

Phoenix is seeing some of the biggest demand in the country when it comes to the industrial sector thanks to its prime location.

Net absorption in the second quarter reached 4.2 million square feet, according to a report from Transwestern. Not only has that number surged 59 percent year-over-year but it’s also up 32.8 percent from the decade quarterly average. Over the past 12 months, Phoenix has recorded a total of 16.1 million square feet. Transwestern calls the performance “one of the strongest industrial markets in the country.”

When it comes to submarkets, Pinal County led the way with a total of 1.06 million of net absorption for three months through June. Also, warehouse and distribution properties dominated the spaces of the leases, generating a total of 4.24 million square feet in the second quarter.