PHOENIX, ARIZONA Phoenix industrial market activity continued to accelerate posting a strong start to 2021. After a record-breaking year in 2020, the first quarter showed no signs of slowing down. Net absorption totaled 5,622,877-square-feet in Q1 2021. This marked the highest quarterly net absorption since Q4 2013. Leasing activity in the Valley is already on track for another record-breaking year. Strong leasing activity throughout the Valley, users seeking newly completed buildings, several pre-leased deliveries and build-to-suit completions drove net absorption.
In Q1 2021, 25 buildings delivered totaling 4,394,711-square-feet. While supply and demand remained tightly aligned at the close of 2020, net absorption significantly outpaced deliveries in Q1 2021. Construction deliveries across the valley are well-warranted as new users enter the market and vacancy has tightened to the lowest rate in 15 years. Out of all deliveries in the first quarter, over 63.1% were absorbed at the time of delivery.
And the full Comprehensive Phoenix Market Report Q1 2021 here