• Key indicators in the Phoenix industrial market continued to reflect steady growth and a healthy economy during the fourth quarter of 2017.

  • Overall vacancy decreased from 7.3% to 6.8% during Q4 2017 (its lowest level since 2006).

  • As the local economy continues to improve, companies are expanding their existing spaces or adding additional locations across the Valley.

  • During the fourth quarter of 2017, the Phoenix market recorded 2,883,749 sq. ft. of net absorption. Almost 58% of this net absorption occurred in the Southeast Valley and Phoenix Airport Area submarkets.

  • The marketwide average asking lease rate decreased from $0.65 to $0.64 NNN per sq. ft. (monthly) quarter-over-quarter. Out of the 28 submarkets, 11 reported higher rental rates, seven remained the same and 10 reported lower lease rates on a quarter-over-quarter basis at the end of Q4 2017.

  • At the end of the fourth quarter of 2017, there was 6,559,152 sq. ft. of industrial space under construction. This represented a 27% percent increase quarter-over-quarter and a 22% percent rise year-over-year.