Thank you for sharing!

Your article was successfully shared with the contacts you provided.

PHOENIX-The Valley’s industrial market is keeping pace with supply and demand as new construction absorbs nearly half of all delivered space to date this year, according to DAUM Commercial Real Estate Services’ mid-year report.

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.