The Phoenix industrial market’s momentum continued into the second quarter with 1,880,638 sq. ft. of positive net absorption, its 41st consecutive quarter of gains.
Phoenix industrial vacancy was 5.9% in Q2 2020, an increase of 40 bps after a dip in Q1 2020.
Currently, 13,096,560 sq. ft. of industrial space is underway across the Phoenix market. At the end of the quarter, 40.2% of the space under construction was committed to by tenants currently located in the market and new entries to Phoenix.
Construction is heavily concentrated in the Southwest Valley due to the availability and affordability of land, where 11,765,914 sq. ft. of product is underway.