Phoenix tops the list of emerging industrial real estate markets to watch, followed by Nashville, Columbus, Salt Lake City and Savannah. 

An analysis by Cushman & Wakefield evaluating key performance indicators like net absorption, new tenant demand, vacancy, rent growth, construction pipeline and deliveries showed that Phoenix—one of the fastest growing industrial markets in the country—is among the tops in the nation for absorption. More than 57 million square feet of leasing drove 51 msf of absorption from 2019 through 2021—a huge uptick from the fourth quarter of 2018, when demand registered 15.9% and the city was ranked 29th nationally. 

"To keep up with the increased demand, developers completed nearly 40 msf of new industrial product in that timeframe with another 33.0 msf in the pipeline as of Q1 2022, ranking the city as one of the largest development markets in the US," Cushman & Wakefield's Jason Price note. "Its proximity to West Coast markets and ports makes Phoenix an attractive alternative for occupiers over markets like A. and the Inland Empire as rents are less expensive and space options are more abundant. Like the remainder of the nation, rents are on the rise, but remain significantly cheaper than in markets along the West Coast."