Phoenix industrial outlook: Demand, vacancy, and deliveries

Bar graph displaying Phoenix Commercial Real Estate Industrial Market Stats from 2019 to 2024 projection

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.

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