The exponential growth of industrial space in Greater Phoenix, which has crested in a tidal wave of more than 23M SF in new warehouse deliveries in the past six months, is beginning to overwhelm the still robust fundamentals of the market.
The overall industrial vacancy rate in Phoenix surged to 7.6% in the fourth quarter, while net absorption dipped to 2.4M SF, according to Transwestern's latest market report.
The unfolding impact of this record-breaking surge in deliveries comes into focus when you compare these two data points to Q4 2022, when the vacancy rate stood at 4.7% and positive net absorption was nearly 7M SF.
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