Manufacturing activity in Phoenix spikes alongside growing demographics and labor force
Manufacturing activity throughout Phoenix has seen a significant boost in the past three years.
October 16, 2019
- Manufacturing activity throughout Phoenix has seen a significant boost in the past three years. This is partly due to speculative manufacturing construction being more of a rarity in Phoenix, however, recent labor and population increases have attracted significant build-to-suit activity.
- Phoenix’s allure is largely a demographic story, as the Metro continues to add approximately 200 people everyday alongside the manufacturing labor force’s significant upward trend, tripling national manufacturing labor increases in the past three years. With that, 2017 and 2018 have seen significantly more manufacturing construction than the ten-year average of 460,000 square feet, with 2019 on track to more than double that with up to 1.3 million square feet of manufacturing space in the pipeline for the end of the year with more the come in the first half of 2020.
- These significant strides are being led by Red Bull and Ferrero Rocher, among others, with a heavy focus on Phoenix’s Northwest submarket in the new PV 303 business park. In addition to build-to-suit activity, a Fortune 100 clothing company and Vital Pharmaceuticals acquired 901,700 and 394,775 square feet in Q3 2019, respectively, with the motive to add over 800 manufacturing related jobs alongside over $380 million of expected investments to the local economy. With that, manufacturing’s allure to Phoenix is expected to remain in unison with Phoenix’s leading demographic efforts, which are projected to slow but remain comparatively strong in the next few years.
Source: JLL Research