The Phoenix industrial market’s momentum was solidified by 3,932,801 sq. ft. of positive net absorption in the third quarter, its 38th consecutive quarter of gains and the second-highest quarterly total since Q4 2013.
Phoenix industrial vacancy was 6.1% in Q3 2019, down 40 bps after a moderate increase in the second quarter.
The overall average asking lease rate of $0.66 per sq. ft. NNN in Q3 2019 was a slight increase from both the previous quarter and year over year.
In Q3 2019, 2,825,445 sq. ft. of industrial product delivered in the Phoenix market, with 75% dedicated to speculative space. Currently, 11,906,784 sq. ft. of industrial space is underway—the highest quarterly total since Q3 2007.