Delivery of new construction continues to fuel Phoenix’s supply side pressures
Through the first half of 2024, 22.4 million square feet (msf) of new industrial product has delivered in Phoenix, with 11.0 msf coming to market in the second quarter alone. New supply constructed through the first two quarters of 2024 has introduced over 11.0 msf of new vacant space to the market, making up nearly 30.0% of the broader market vacant square footage. While near-term positive absorption stemming from large space commitments in previous quarters may provide a brief pause to supply-side pressures fueling vacancy, the construction pipeline totaling 29.4 msf and remaining nearly 66.0% available highlights just how ‘open’ the faucet of supply will remain.