CommercialSearch just released the latest mid-year industrial development report. With 39.1 million square feet currently underway, Phoenix topped the list as the market with the most industrial space currently being built. The Phoenix market is expected to expand by 10% once the project is completed, making it the 2nd-largest market expansion nationally.

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At the close of the first half of 2024, the U.S. had 375.7 million square feet of industrial space under construction. Notably, the amount under construction nationally has dropped by almost 19% compared to the start of the year, when 463 million square feet were under construction, and by 45%compared to January 2023.

Using CommercialEdge data on industrial property completions and assets under construction, we looked at the markets with the largest industrial real estate pipelines as of July 2024, the largest properties scheduled for a completion in the second half of the year, and the largest properties built so far in 2024.

Phoenix maintained its title of industrial market with the most space currently under construction.

  • The Phoenix industrial pipeline currently encompasses more than 39.1 million square feet of space, dropping from 42.5 million square feet in January 2024. Phoenix surpassed the runner-up, Savannah, by over 10 million square feet.
  • The most significant projects set to be completed in H2 2024 here include Lucid’s electric vehicle (EV) plant expansion as well as distribution centers in Buckeye, Ariz., and Goodyear, Ariz.
  • The current construction in Phoenix will significantly increase the market’s inventory by almost 10%.
  • Overall, the industrial supply under construction nationally dropped 19% in the first half of the year, from 463 million square feet in January to 376 million at the end of June. The drop can mostly be attributed to a lack of new projects due to high borrowing costs and lower demand for logistics space.

Find more details and our complete methodology here: https://www.commercialsearch.com/blog/mid-year-industrial-development-report/