PHOENIX-The good news when it comes to Phoenix industrial space is that demand has pushed more construction during the past handful of quarters. The downside of this is that, with supply somewhat outpacing demand, Q2 2013 absorption numbers and vacancies were below was was reported during Q2 2012.

According to Colliers International, absorption stood at 277,437 square feet, well below the 2.2 million square feet of absorption reported during the same period the year before. The Colliers statistics show a declining vacancy rate at 12.6%, down from 13.1% year over year.

Cassidy Turley's figures weren't so far from Colliers, showing Q2 absorption of 291,631 square feet versus the 1.4 million square feet reported in Q1 2013. Both research teams pointed to the delivery of new space to market as the cause of both moderate vacancy hikes and decreased absorption. However, "as the local economy gains momentum in the second half of 2013 and housing starts accelerate, tenant demand for industrial space should return with net absorption expected to reach more than 1 million square feet per quarter going forward," the Colliers report notes.