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PHOENIX-The past year proved to be a hot one on both industrial and office sides with the pace of corporate and industrial users boosting demand for all types of space, from class A office to warehouse distribution. Local experts tell GlobeSt.com that the demand, across all classes, should continue to be healthy well into 2007.

Kevin Calihan, first vice president in Phoenix for CB Richard Ellis, says this year's noteworthy trend on the office side was the huge demand. "We're going to end up absorbing more product than we delivered this year," he says. "I don't think anyone foresaw the pace at which corporate users would be taking down space."

The good news, Calihan continues, is developers are trying to keep up with demand. There is four million sf of office space under construction and anticipated for delivery next year. "A delivery of upwards of four million sf could put the market into equilibrium, where users have a couple of viable alternatives when they look for extra space," he adds.