Phoenix has remained a top market for logistics users and manufacturers, given the area’s relative affordability, proximity to major ports, and distribution hubs of California. Phoenix industrial rents average $0.89/SF (monthly); however, rents vary widely by submarket. Submarkets in the West Valley have asking rents of around $0.58/SF, in the East Valley asking rents average $0.91/SF, and in North Phoenix rents are near $1.25/SF.
Industrial investors continue to target the Phoenix market. Currently, Phoenix continues to set new records for square footage under construction with 38,666,012 SF underway across metro Phoenix. The concentration of new supply is in the Southwest Valley. The sustained strength of warehouse space in Phoenix continues to be demonstrated and the Phoenix metro industrial market will continue to be one of the most resilient in the country.