Phoenix industrial market: Rising inventory and slow down in leasing

Since 2020, the Phoenix industrial market has faced sharp increases in inventory, while leasing activity as a percentage of total inventory has steadily declined.
Despite positive absorption, vacancy rates are climbing as new inventory floods the market, while leasing activity comprises just 4.1% of total inventory in 2024, down from 10.4% in 2021.
Significant inventory growth, 25.7%, from 2021 to 2024 highlights the discrepancy between leasing demand and the pace of new deliveries.

October 31, 2024

US-AZ-PHX Phoenix