Industrial Vacancy Ticks Up After More Valley Buildings Come Online in Q1

Article originally posted on Phoenix Business Journal on April 29, 2024

Industrial construction has significantly slowed this year as more buildings are delivered without tenants secured, causing the vacancy rate to creep up in metro Phoenix.

About 30 million square feet of industrial space was under construction in the first quarter — a 44% decrease from a peak of activity in the second quarter of last year, according to JLL research.

Last year, metro Phoenix ranked No. 1 in the country for its industrial pipeline with nearly 60 million square feet of space under construction. This was followed by a record number of buildings being delivered, which has steadily pushed vacancies to rates seen before the Covid-19 pandemic.

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