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| Pat Harlan |
PHOENIX, AZ – The Phoenix
industrial market is on pace to hit an all-time high absorption record,
according to the new Q3 Phoenix Industrial Insight report just released by the
Phoenix office of JLL. The last peak came in 2005, when the market absorbed 7.9
million square feet of industrial space during a single calendar year.
As of Q3, the Phoenix
industrial market has recorded more than 6.1 million square feet of positive
net absorption, making 2017 the fourth consecutive year of at least 6.0 million
square feet of space absorbed. According to JLL, another 1.1 million square
feet of pre-leased space is expected to deliver by the end of the year.
Combined with any new
deals that emerge during Q4 2017, this brings the year-end forecast for total
absorption very close to the market’s all-time high of 7.9 million square feet.
JLL Managing Director Pat Harlan credits the momentum to
well-rounded market activity from sectors that include, but are not limited to,
manufacturing, high-tech aerospace, e-commerce, food packaging, nutraceuticals
and logistics and distribution.
“Never before have we seen
activity from such a well-diversified tenant pool,” said Harlan. “The companies
leasing space in Phoenix are extremely diverse and run the full spectrum – from
smaller users of 30,000 square feet to large build-to-suit users of 150,000 square
feet. We’re very excited about this time in the Phoenix industrial real estate
market.”
Conair was the largest
contributor to Q3 2017 absorption, taking down 1.0 million square feet in
northwest Phoenix. Four other companies also ranked high on this list, all
leasing space in the Southwest submarket:
· Updike Distribution Logistics – 226,436
square feet
· Staples – 150,000 square feet
· Performance Designed Products – 116,769
square feet
· Home Brands – 114,132 square feet
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| Rendering of Typical Phoenix Industrial Project |
“The Southeast valley is seeing the largest
deals it ever has, primarily from manufacturing, high-tech and aerospace
companies,” said Harlan. “We are tracking 136 active requirements valleywide,
with no signs of activity slowing down.”
With absorption continuing
to outpace construction, there remains a steady demand for new space – a need
that will be filled, in part, by 4.4 million square feet of new industrial
space currently under development across the Valley.
To access the complete JLL
Q3 2017 Phoenix Industrial Insight and Q3 2017 Phoenix Industrial Statistics
reports, visit the JLL Phoenix research page at www.jll.com/phoenix.
For more news, videos and research resources
on JLL, please visit www.jll.com
For
more information on this press release, please contact:
Stacey Hershauer
Phone:
+1 480 600 0195
Email:
