Investors looking to break into Phoenix's industrial market will need to get creative. The market has grown tremendously in the last 12 months, and it is attracting both private and institutional capital. The problem, however, is that few sellers are willing to part with their product when tenant demand and rental rates are reaching historic heights. As a result, investors are finding challenges placing capital in the market.

“There are not many investment deals on the market, and you are seeing a lot of investment deals trading before they go to market,” Chris Rogers, VP in DAUM Commercial's Phoenix office, tells GlobeSt.com. “This is a new trend in the market. There are a lack of sellers, and owners that are looking to sell can't find properties to trade into if they are interested in selling. So, you are seeing investors holding onto product.” The dearth of investment opportunities has been challenging not only for investors entering the market but for 1031 exchange buyers as well. For owners that are willing to sell, there are limited trade opportunities, and that has only exacerbated the supply issue.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.