• The Phoenix industrial market’s momentum continued into the fourth quarter with 2,594,616 sq. ft. of positive net absorption, its 39th consecutive quarter of gains.

  • The positive absorption contributes to the year-end total of 10,677,269 sq.  ft. of  net absorption, the  highest annual total  since  2005.

  • Phoenix industrial vacancy was 6.3% in Q4 2019, up 20 bps after a moderate decrease in the third quarter. The modest increase is largely attributed to healthy levels of recently completed speculative buildings.

  • The overall average asking lease rate of $0.68 per sq. ft. NNN in Q4 2019 was a slight increase from the previous quarter ($0.66 per sq. ft.) and a more significant year over year  improvement  ($0.63 per sq. ft.).

  • In Q4 2019, 3,268,937 sq. ft. of industrial product delivered in the Phoenix market, with 60% dedicated to speculative space. The new product contributes to the yearly total of 9,134,088 sq. ft. of industrial completions.

  • The expansion and improvement of infrastructure, including the recently completed 22-mile extension of Loop 202 in the West Valley, will provide users with increased accessibility around the metro and to other major markets.