PHOENIX-The Valley Industrial market is finally showing signs ofimprovement, posting positive net absorption and decreased vacancyduring the second quarter, according to a recent report fromCassidy Turley BRE Commercial.

“We had a surprisingly strong second quarter in terms of leasingand positive absorption,” says Rick Danis, executive vice presidentof Cassidy Turley BRE Commercial’s industrial investment group. “Alot of the market was pleasantly surprised that we could post thelargest increase in occupied square feet in almost two years. Weall think that proves fundamentals getting healthier.”

The report says the second quarter experienced an increase indemand as the overall net absorption total was nearly 1.4 millionsquare feet, the largest increase in 10 quarters. During thatperiod, only two quarters have posted positive net absorption, withthe 4th quarter of 2009 posting the only other gain. The secondquarter absorption offset the decline from the previous quarter,leaving the industrial market with positive net absorption of788,474 square feet year-to-date.