Phoenix industrial outlook: Demand, vacancy, and deliveries

In 2024 and beyond, it would appear Phoenix may be trending towards greater equilibrium or even a slight oversupply. We anticipate this could result in a softening of rental rates and offering more concessions such as free rent. All eyes are on absorption in the coming 12-18 months as record numbers of deliveries hit the market. Absorption as a percentage of deliveries totaled 93% in 2022, but is anticipated to fall to 63% in 2023.