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Market Report

Phoenix Industrial Market Report

2024 Investment Forecast

Major Manufacturing Investments Herald Active
Future as Phoenix Leads in Asking Rent Growth

Long-term demand drivers paint over recent, construction-induced headwinds. While a 2022 construction surge led to some market settling last year, Phoenix’s connection to Southern California ports and robust population growth continue to support demand for industrial space. Approximately 58,000 individuals will move to the market on net this year, bringing total in-migration since the end of 2019 to nearly 261,000, the third-highest figure in the country. The growing number of residents, including in the metro’s western and southeastern cities, is driving the need for local warehouse and logistics space. This year’s development pipeline is well-aligned with these dynamics, as Glendale alone will host three separate 1 million-square-foot-plus warehouses. The metro is also poised to welcome a quartet of semiconductor fabrication plants from TSMC and Intel between 2025 and 2028, although construction delays could extend that timeline. The need for specialized labor and support businesses will form major demand drivers for residential and commercial space.

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