Q3 industrial activity fueled by the Southwest Valley
- After a slow start to 2018, Phoenix’s industrial market is back on track towards expected market fundamentals, as absorption is on par with deliveries and rates continue to rise.
- To no surprise, the Southwest Valley lead the metropolitan area in absorption, recording just over 1.7 million square feet of absorption this quarter, while holding 43.8 percent of Phoenix’s YTD absorption.
- Development remains strong as well, with about 69.6 percent of construction activity taking place in the Southwest Valley. TEN Warehouse and Lincoln 40 Logistics lead activity delivering 2 million square feet of space alone by the end of 2018.
- Due to all-around favorable conditions, the Southwest Valley is great target for data center activity as well, with Microsoft recently purchasing over 260 acres of land intended for data center usage.
- New opportunity zone designations may also spur interest in areas previously untouched, specifically in the Downtown and Airport areas.
Source: JLL Research, www.SkyBridgeAZ.com