Phoenix maintains its position as the top city for industrial development in the United States, with over 8.8 million square feet of new space delivered in Q4 of 2023. According to Avison Young’s Fourth Quarter 2023 Phoenix Industrial Market Report, this number is expected to continue growing as an additional 44.3 million square feet are currently under construction.
The Valley stands out among other major cities such as Dallas, Fort Worth, Atlanta, Charlotte and Las Vegas for having the highest amount of inventory under development.
While there was a slight decrease in net absorption from Q3 to Q4 of 2023, it still remains positive at 2.3 million square feet. Overall net absorption for the year also surpassed pre-pandemic levels.
Despite a spike in vacancy rates reaching up to 8% by the end of Q4 compared to earlier in the year due to new deliveries entering the market, Phoenix’s industrial sector continues its strong performance and leads nationwide growth trends.
