42Floors has just released a new study following the evolution of commercial real estate development since 2010 and Phoenix ranks among the Top 10 metros for industrial completions.
Here are the key takeaways for Phoenix from the report:
• The Phoenix metro came in 6th on the list of top 10 metro areas for industrial completions, adding more than 76 million square feet of new space to its inventory since 2010, closely behind Atlanta (92 million square feet);
• The only other Western metro on the list was Riverside, CA which came in 2nd place adding a total of more than 188 million square feet to its inventory.
• Approximately, 120.4 million square feet of commercial real estate space were delivered in the West in 2021.
Midwestern & Southern MSAs Compete for Top 10 Industrial Completions
In terms of industrial completions, metros from the West and Midwest competed with the likes of Dallas, Houston and Atlanta for a spot among the top 10. And, while the Midwest had the highest number of entries on the list, the Southern metros actually raked up more total square footage for their completed projects (448.5 million square feet of industrial space).
Ultimately, Dallas ended up in the first position once again, with 215.7 million square feet of industrial and warehousing space added during the surveyed period. What’s more, as the Southern metro’s dominant display indicates, Dallas has benefited from the multiplier effect of this massive increase in its industrial pipeline, as demand for other commercial real estate in the region increased, as well: At the end of the surveyed period, Dallas also boasted the highest amount of retail completions (24.5 million square feet) and second-most office space added (48.8 million square feet).
There were also two other Southern MSAs within the top 10 for industrial completions: The Houston metro — which came in fourth — added roughly 141 million square feet of warehousing space to its inventory, followed by Atlanta with a total of 92 million square feet.
Outside of the South, the Riverside-San Bernardino, Calif., MSA came in second with a total of 188.5 million square feet. The only other Western metro area among the top 10 for this indicator was Phoenix, which had the sixth-largest number of industrial completions (76.4 million square feet).
In the Midwest, Chicago — which came in third — had the highest number of warehouse and industrial completions (163.5 million square feet) during the surveyed period. That said, Indianapolis, which added the second-largest amount (69 million square feet), had a significant lead over the next entries in this region (Columbus, Ohio, with 54.6 million square feet and Kansas City, Mo., with 51 million square feet).
Not to be outdone, the New York metro squeezed its way into the top 10. It was the only urban concentration from the Northeast to do so and placed eighth with 64 million square feet of industrial space added.