Phoenix industrial sales volume eclipsed $1 billion in the second quarter

About $1.1 billion worth of Phoenix industrial properties traded hands in the second quarter of 2026. That amount marks the eighth-consecutive quarter with more than $1 billion in sales and ranks the Valley number six in the country for sales volume.

The Phoenix industrial market has witnessed unprecedented growth over the past five years, driven by local economic growth, relative affordability and the area’s renewed importance in national supply chains. These factors and the ensuing tenant demand prompted a surge in development, adding more than 150 million square feet of new industrial space since the onset of the pandemic.

The wave of supply provides buyers with a deep pool of institutional-grade properties. Transactions of $100 million or more, which were rare pre-pandemic, occur with increasing regularity as investors pursue newly built megawarehouses and industrial parks.

While the West Valley of Phoenix has captured the bulk of these trades over the past few years, activity on the other side of the market was the standout last quarter.

The North Chandler-Gilbert submarket, which encompasses the Mesa Gateway Airport area, saw $372 million in industrial sales in the second quarter, the sixth most among the more than 2,000 submarkets across the United States.

For example, La Costa Capital Partners paid $116 million for Building C of The Cubes at Mesa Gateway in June 2026. The 1.2 million-square-foot property was built in 2023 by CRG and is fully leased by Lowe’s.

Additionally, a joint venture between MIG, Miramar Capital and Axonic Capital acquired The Hub @ 202 for $135 million in June. The 10-building industrial park was built in 2024 just north of the Mesa Gateway Airport. The buyer referenced Phoenix’s “long-term fundamentals” and its status as “one of the country’s most dynamic growth markets” as reasons for pursuing the industrial park in a press release.

Moving forward, the Valley could remain one of the most liquid industrial markets in the country. A pullback in completions over the past few quarters, coupled with robust tenant demand, caused the marketwide vacancy rate to inflect and decline 150 basis points year to date. The construction pipeline has thinned to half its 2023 peak, helping alleviate pressure from new completions that weighed on property performance in recent years.

Additionally, the Valley boasts powerful long-term tailwinds, including a robust demographic profile, strong momentum in advanced manufacturing and a favorable regulatory environment.

These factors should support continued investment in the Phoenix industrial market over the near term.