PHOENIX-The Valley’s office and retail markets may still be struggling, but the industrial sector is well on its way to recovery. In fact, first quarter industrial absorption as reported by Cassidy Turley’s just-released market report has local brokers and owners smiling.

“The Phoenix industrial market is doing better than anyone could have anticipated,” says Andy Markham, an industrial broker with Cassidy Turley BRE Commercial’s local office. “For 2011, we initially forecast annual absorption of 3 million square feet, but we’ve had to revise that number upwards since the market posted nearly 2.5 million square feet of absorption during the first quarter alone.”

Markham tells GlobeSt.com that Cassidy Turley BRE Commercial now estimates that 2011 industrial absorption will eclipse 5 million square feet. “There is definitely pent up demand,” he says. “We’re tracking about 10 million square feet of active users in the market looking for space.”