Phoenix Industrial Activity Maintains “Frontrunner Status”

Metro Phoenix is experiencing a surge in industrial construction, with 31 speculative groundbreakings adding 6.6 million square feet of planned space to the pipeline during the second quarter of 2023, according to JLL’s Phoenix Industrial Insight report. Pre-leases accounted for 43% of new leasing activity totaling 4.7 million square feet and 17% of under-construction industrial space was pre-committed by tenants from diverse backgrounds. The local vacancy rate stands at 3.1%, while rental rates have increased 20% year over year to $0.79 per square foot as of Q2 2023 end date . These figures demonstrate that Phoenix continues its status as an industrial frontrunner due to overwhelming demand for new spaces and buildings being leased before completion .