Search
 

Valley Industrial Market Shows Positive Signs of Growth

PHOENIX-Buoyed by small to mid-size users, the Valley's Industrial market appears to be picking up steam. Net absorption has increased, vacancies have dropped and demand for new construction has been on the rise.

By Beverly Ford | Updated on September 29, 2003

PHOENIX-The Valley’s industrial market saw an increase in net absorption, a decline in vacancies and a strong demand for new construction as the economy slowly climbed out of its recession mode, a study of metro Phoenix’s industrial market has shown.

“Users are slowly returning to the marketplace,” Tony Lydon, senior vice president with Grubb & Ellis/BRE Commercial, tells GlobeSt.com. “Over the last 2 1/2 to three years, it’s been a long haul, but we’re now starting to see tangible signs of recovery with the small to mid-size community.”

The Grubb & Ellis-commissioned study found industrial vacancies in the Valley dropped to 11.1% from the 11.6% posted in the first quarter, reflecting a decline in vacancies in seven of 10 Phoenix submarkets. Glendale remained the healthiest submarket with a vacancy rate of 4.6% while West Central Phoenix saw the greatest decline with a 1.8% drop in vacancies. Southwest Phoenix, which has historically had the highest vacancy rate in the Valley, continued to retain that position with a vacancy rate of 16.8%.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2025 ALM Global, LLC. All Rights Reserved.