Colliers International is reporting increasing industrial activity in the Greater Phoenix market for third quarter.
Industrial vacancy in Greater Phoenix improved modestly in the third quarter, dipping to 11.9 percent. Despite some fluctuations, the overall vacancy rate has been fairly stable over the past 18 months.
Net absorption gained momentum in the third quarter, topping 1.3 million square feet. With several large leases signed during the third quarter, net absorption should be strong in the final three months of this year.
Construction of industrial buildings is slowing, with fewer than 800,000-square-feet coming online during the third quarter, compared to more than 1.6 million square feet in the second quarter.
Sales of industrial buildings rose approximately 5 percent from the second quarter to the third quarter. Despite the recent uptick, sales activity year to date is 10 percent behind last year’s pace.
The median price in industrial sales thus far in 2015 is $71 per square foot, 6 percent higher than the 2014 median price.
Asking rents were essentially flat from the second quarter to the third quarter, averaging $0.52 per square foot, per month. While rents leveled off in the most recent period, they are up 2.4 percent over the past 12 months. The Airport Area is benefitting from the introduction of newer, more expensive space into inventory. Average asking rents in the Airport Area have posted a 6 percent increase in the past 12 months, ending the third quarter at $0.64 per square foot, per month.
To see the full report click here Phoenix Industrial Report_3Q 2015