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| Anthony (Tony) Lydon |
PHOENIX, AZ, July 31, 2019 –
Phoenix’s Southwest Valley submarket has placed top in the nation for
industrial prospects looking for space to relocate or expand their operations,
according to the newly released JLL Q2 Phoenix Industrial Insights report.
According to JLL,
this includes 83 tenants in the market with a maximum requirement of more than
30 million square feet.
“When you consider the region’s
robust in-migration, reasonable governmental regulations and sustained growth
in global trade and regional consumption, the Phoenix economic machine appears
to be hitting on all cylinders,” said JLL Managing Director Anthony Lydon.
“Not even the hot
summer months have slowed the tide of inquiries, facility tours and letters of
intent. As that interest turns to commitments – and then to absorption – I
expect we will see even greater expansion of our industry supply chain, which
is the backbone of the Phoenix industrial sector.”
According to JLL, nearly a decade of positive net absorption has
pushed metro Phoenix industrial vacancy to a 10 year low of 6.7 percent, only
decimals away from the Valley’s historic low point of 6.2 percent vacancy
achieved during the third quarter of 2006.
As has long been the case, the
Phoenix industrial sector continues to benefit from a large flow of manufacturing
prospects, e-commerce, logistics and distribution interests – particularly for
Southwest Valley space.
“This quarter was a little unique
in that Nestle and Ulta both vacated from the Southwest Valley, creating
negative absorption in the submarket,” said Lydon. “But in our current
environment, we expect that figure will quickly recover with broad demand from
industrial big box, mid-bay and data center prospects.”
There is currently more than 6.3
million square feet of new industrial space under construction in metro
Phoenix, with absorption continuing to exceed new space deliveries as it has
done for five-and-a-half straight years.
To access JLL research
for Phoenix and across the U.S., visit the company’s research page at https://www.us.jll.com/en/trends-and-insights#research.
Contact:
Stacey Hershauer
Phone: +1 480 600 0195
Email: stacey@focusaz.com
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