Mega-Portfolio Hits the Industrial Sale Column

Riverside Business Center has abundant cross-dock distribution space.

PHOENIX—The Phoenix industrial real estate market started 2016 with nearly 1.9 million square feet of net absorption, despite vacancy and rental rates remaining steady. Market-wide direct vacancy rates retained the rate of 10.3%, a result of considerable leasing activity in the past quarter balancing out more than 2 million square feet of construction deliveries. With growing demand, the market continues to tighten, and increased competition for space is expected. Resulting higher rates should continue in 2016, says Kidder Mathews.

Continuing the theme established in the first quarter reflecting increased activity, a significant amount of industrial space was recently sold. While a large portfolio of industrial space located in one of the country’s fastest growing metro areas is bound to attract significant investor attention, this one is of historic makings.