Article Originally Posted By Phoenix Business Journal On August 9, 2021
The West Valley saw the most industrial construction in the region in the second quarter as Phoenix hit records in new construction and low vacancy rates, Jones Lang LaSalle said in its latest industrial insight report.
Of the more than 18 million square feet of new industrial product under construction in the Phoenix metro — a record high for a single quarter — about 75% occurred in the West Valley, according to experts.
“The level of construction that we’re seeing right now is definitely needed, because we also have a vacancy rate that’s near a historic low,” said Jessica Morin, senior director for market analytics at CoStar Group Inc.
The overall industrial vacancy rate reached a low of 5.5% in the Phoenix metro in Q2, Morin said.
The construction boom is driven by available land and "unique" infill opportunities, experts say, as well as continued demand for e-commerce and manufacturing needs, similar to what the rest of the nation has experienced during the Covid-19 pandemic.
“Industrial market growth all over the country is phenomenal and all markets are growing, but Phoenix is growing especially because I think we have room to grow. A lot of places don’t have room to grow,” said Rob Martensen, executive vice president for Colliers in Phoenix.