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Third Quarter Hammers Industrial Market

PHOENIX-Only four submarkets post positive net absorption, with the balance being in such bad shape that industrial vacancy spiked 1 1/2 points in the third quarter. It's ugly, says a Grubb & Ellis broker after seeing the firm's latest market analysis.

By D.J. Burrough | Updated on October 11, 2001

PHOENIX-The Valley’s industrial market, already in a fragile state before Sept. 11, was hammered through the rest of the third quarter, posting a negative net absorption of 713,000 sf. The glut pushed vacancy up 1 1/2 points to 8.7%, according to the Phoenix office of Grubb & Ellis.

“It’s ugly,” says Mike Haenel, a Grubb & Ellis industrial broker in Phoenix. “It’s brutal. It’s slow. There is very little tenant activity, no velocity at all. We are in for more of the same through the rest of the year.”

Four submarkets–Chandler, Mesa/Gilbert, Tempe and West Central Phoenix–all posted negative net absorption during the quarter. West Central Phoenix had 595,000 sf and Tempe, 568,000 sf.

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