In 2000, the market value of industrial space hit a historical high of $50.58 per sf. In 1999, values had been $48.92 per sf. Values have been on a steady climb since 1993, when it was $22.34 per sf.

As with other sectors of the real estate market, the number of sales in industrial are off. There were 239 sales of industrial buildings in 2000, down from 351 the prior year.

During the past year, buyers have paid $69.84 per sf for such space in comparison to just $23.12 per sf in 1993. And, flex building rents have increased accordingly.

While values for warehouse and distribution space have not increased as dramatically as that of flex space, the market has been more stable. The average price paid in 2000 was $37.06 per sf for warehouse and distribution space whereas it had been just $20.11 per sf in 1993.

Flex buildings in industrial park settings have benefited the most in today's market, where office demand is high. "These structures often serve as a lower cost alternative to traditional office space and, despite increased construction in recent years, values have more than tripled since 1993," Kammrath tells GlobeSt.com. "Warehouse properties tend to be somewhat insulated from the influences of the usual real estate cycles that affect growth area and they are generally not impacted by events taking place among other property types."

Kammrath predicts that property values and operating income have experienced the largest percentage increases and that values will remain firm while appreciating at least with the pace of inflation. "The Phoenix industrial market is poised for growth in keeping with the rate of population increase, which is likely to remain strong in the near term," he says.