Phoenix, AZ industrial demand continues to outpace availability

Riley Gilbert

PHOENIX, AZ – Metro Phoenix absorbed more than 5.4 million square feet of industrial space during the first three quarters of 2018, and according to the Q3 2018 Phoenix Industrial Insight report from the Phoenix office of JLL can expect another 1.8 million square feet of absorption by the end of Q1 2019.

“That absorption will come from the usual suspects, including a lot of e-commerce-related activity and in early 2019, a notable rise in data center absorption,” said JLL Vice President Riley Gilbert.

“That is not surprising when you consider that 30 percent of all third quarter land sales in the Southwest Valley alone were purchased for data center use.”

According to JLL, around 25 percent of all absorption in 2018 came from e-commerce companies, including 400,000 square feet during the second quarter, 970,000 square feet during the third quarter and approximately 650,000 square feet expected between now and the end of the year. As much as 56 percent of Q1 2019 absorption is expected to involve e-commerce-related operations as well.

“Geographically, there is also continued domination by the Southwest Valley, which represents almost 70 percent of all active metro Phoenix construction activity,” said Gilbert.

Looking ahead, JLL is expecting demand and absorption to continue. That optimism is strengthened even further by the Loop 303 corridor, a new frontier for large users like Ball Manufacturing who are planting their flags in this emerging industrial submarket.

Typical Ball Manufacturing Plant Can-making Interior

To access JLL’s Q3 Phoenix Industrial Insight report or other local and national JLL research reports, visit the JLL Phoenix research page at www.jll.com/phoenix/en-us/r esearch.

 For more news, videos and research resources on JLL, please visit ir.jll.com or www.jll.co m/phoenix.

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Email: stacey@focusaz.com