PHOENIX-The Valley Industrial market is finally showing signs of improvement, posting positive net absorption and decreased vacancy during the second quarter, according to a recent report from Cassidy Turley BRE Commercial.

“We had a surprisingly strong second quarter in terms of leasing and positive absorption,” says Rick Danis, executive vice president of Cassidy Turley BRE Commercial’s industrial investment group. “A lot of the market was pleasantly surprised that we could post the largest increase in occupied square feet in almost two years. We all think that proves fundamentals getting healthier.”

The report says the second quarter experienced an increase in demand as the overall net absorption total was nearly 1.4 million square feet, the largest increase in 10 quarters. During that period, only two quarters have posted positive net absorption, with the 4th quarter of 2009 posting the only other gain. The second quarter absorption offset the decline from the previous quarter, leaving the industrial market with positive net absorption of 788,474 square feet year-to-date.