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Steady rent growth in popular industrial submarkets

  • The Phoenix industrial market was hit hard during the Great Recession, in part due to its heavy reliance on the housing market. After bottoming out in 2011 at $0.41, rates have since grown 24.3 percent above the 2010 average.  
  • Despite a relatively high vacancy rate, the Southwest submarket has seen strong big box demand. Since 2010, over 45 percent of new developments have been located in the submarket, escalating rate growth even further.
  • Rates have grown at least 28 percent in the Deer Valley, Tempe and Airport submarkets. All are strategically located near airports, and have successfully attracted small and mid-sized users as well as large users.
  • Even though Gilbert and Chandler are close in proximity, Chandler was hit harder during the recession. Rates in Chandler fell for longer than the other submarkets and have just recently surpassed 2010 levels.​

Source: JLL Research​

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