Nearly 50 Phoenix Metro Industrial Buildings Delivered at the End of 2023

Article originally posted on Phoenix Business Journal on January 22, 2024

Dozens of new industrial buildings added to metro Phoenix’s inventory in the fourth quarter while also increasing the market’s vacancy rate.

Nearly 9 million square feet delivered in the fourth quarter to bump the market’s vacancy rate to 8% — double the rate from the first quarter, according to Avison Young research.

In the quarter prior, about 13 million square feet of space was also delivered.

Kevin Helland, a senior vice president for Avison Young in Phoenix, said demand spiked during the Covid-19 pandemic from e-commerce and online shopping, resulting in significant new development in Phoenix.

“Phoenix quickly became one of the darlings of the national industrial market, so everybody responded,” Helland said. “For a period of time in 2021 into 2022, we had a shortage of space and tenants were scrambling to find locations. It was highly competitive.”

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