Colliers International – one of the leading, global real estate services firms – just released a Top 10 Emerging U.S. Industrial Markets Report, which features Phoenix as a market to watch in 2018.
A few key reasons that Phoenix was chosen, as identified by Colliers, include:
- The Phoenix industrial market continues to post exceptional growth because of its proximity to a growing population, a strong workforce base, an expanded and modernized highway system and more attractive rental rates compared to markets in Southern California.
- Phoenix recently expanded its local interstate system, and its location along Interstate 10 gives the market a significant logistical advantage in reaching the Southwest populace.
- Activity skyrocketed in 2017 as many large tenants took advantage of the market’s growing population, economic rental rates and significant logistics advantages.
“The momentum that built in the Greater Phoenix industrial market the past few years is forecast to carry over into 2018,” said Bob Mulhern, senior managing director for Greater Phoenix. “Demand is robust in the Valley because of the area’s many logistics advantages, a strong economy and a growing population. Net absorption has been quite strong for the past several years and hit an all-time record in 2017. This robust tenant demand is fueling new development. With vacancy at a 10-year low, spec and build-to-suit projects continue to work their way through the development pipeline.”
Here’s what the report says about Phoenix: