Phoenix still a top US market for big-box industrial growth, report says
May 18, 2024, 5:45 AM | Updated: 7:42 am
A view of the Cubes at Glendale industrial park. At full build-out it will total about 5.5 million square feet. (CRG Photo)
(CRG Photo)
Phoenix has kept its title as one of the top markets in the country for the growth of large warehouse space even as the sector has cooled off nationally, according to a CBRE Group Inc. report.
The Valley had a 6% growth rate last year for industrial buildings that are larger than 200,000 square feet, which ranked No. 2 in the U.S. behind Savannah, Georgia’s 13%.
While still one of the top growth markets in the nation, the Phoenix metro’s growth rate in 2023 was a big drop from the previous year’s 14.3%. The rate is found by dividing net absorption by existing inventory.
Leasing cooled off last year while a record number of industrial buildings added to the Valley’s inventory after getting caught up in delays because of supply chain issues and weather.
Cooper Fratt, an executive vice president for CBRE, said last year the Valley only secured six leases each totaling 400,000 square feet or more.
So far this year, the Valley has already reached that and is expected to increase. The region’s proximity to the California ports and a lack of big-box inventory in other markets will drive this growth, Fratt said.
This story is posted in partnership with Phoenix Business Journal. Click to read the full story.
