The Phoenix research team predicts the vacancy rate will continue to hover in the 10% to 12% range. According to the report, construction completions thus far this year added more than four million sf. Absorption is standing at nearly 8.6 million sf for the year.
Steve McKendry, DAUM's executive vice president and branch manager, believes the market will "be able to absorb the majority of this new space," based on the pipeline through the year's end. According to DAUM, there are 35 buildings, totaling 1.6 million sf, under construction. The average rent posted in the second quarter was 49 cents per sf triple net.
The Scottsdale industrial market is the region rent gainer, according to the report. It posted an average asking rate of 84 cents per sf for standard industrial space.
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