According to Colliers International, expect the industrial market to stabilize over the second half of this year.
Industrial vacancy in Greater Phoenix ticked up 10 basis points in the second quarter, reaching 12.1 percent. The rate has dipped 20 basis points from one year ago, and has remained in a fairly tight band over the past two-plus years.
Net absorption totaled 523,000-square-feet in the second quarter, compared to approximately 1.5 million-square-feet in the first quarter. Net absorption has averaged 1.4 million-square-feet per quarter since 2010.
Projects totaling nearly 1.3 million-square-feet were delivered in the second quarter, after more than 1.7 million-square-feet came online in the first three months of the year. Deliveries will slow in the second half of the year, however, eliminating some of the supply-side pressures in the market.
Sales of industrial buildings spiked in the second quarter, following light activity in the first three months of 2015. Despite the volatility, sales velocity is off just 9 percent from the first half of 2014.
The median price in industrial sales to date is $72 per square foot, 9 percent higher than the 2014 median price. Approximately 20 percent of the buildings sold during the second quarter traded at prices above $100 per square foot.
For full report click here: Greater Phoenix Industrial Report_2Q 2015