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Colliers 2020 Q4 Greater Phoenix Industrial Market Report

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Q4 2020 Industrial Market

The Phoenix industrial market ended the year with the highest year-to-date net absorption ever witnessed at 13.9 million square feet, with net absorption exceeding 7 million square feet in the fourth quarter.

  • Under construction decreased 2.2 MSF from third quarter to 7 MSF
  • Delivered 6.5 MSF of new product in Q4, the most new space delivered in a single quarter in Phoenix market history
  • During 2020 the market delivered the most amount of inventory ever witnessed within a single year, adding 16 MSF
  • Asking rates continued to increase nearly 6.78% year-over-year and up 1.61% over-the quarter, reaching $0.63 PSF
  • Airport Area submarket cluster, which is land-constrained to further growth, led the market in rental rate increases with YOY improvement of 11.2% to $0.80
  • Investment sales volume in Q4 outperformed third quarter by 124%, but decreased 0.18% compared to Q4 2019
  • Fourth quarter closed with $1.09 billion in sales volume and $2.5 billion in the year
  • Median price per square foot increased 9.7% over-the-quarter, and 21.1% year-over-year to $122 PSF
  • Cap rates compressed to 6.2%
Outlook: The outlook for the Greater Phoenix industrial market remains extremely healthy and active. Phoenix is moving up to become a top tier market, competing with larger markets for new opportunities. The year 2020 laid out every positive ingredient for a healthy and sustainable industrial market.

It will be difficult to outperform this past year, but the same sentiment was felt after closing out 2019. The growth of the market will continue in a positive direction as more out-of-state companies gain enthusiasm for Phoenix and the demand for space remains competitive.

In the midst of the COVID-19 outbreak, information and data is emerging at a quick and uneven rate. The information contained herein has been obtained from sources deemed reliable at the time the report was written. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.


Colliers 2020 Q4 Greater Phoenix Industrial Market Report

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Phillip Hernandez

Research Manager


As research manager for Colliers International in Arizona, I am responsible for proactively developing and implementing research objectives and directing all research activity for the Arizona offices.

I provide leading-edge, thought-provoking research and analysis of market data for use in producing quarterly statistical market reports for each property discipline, as well as other ad hoc reports, research projects and presentations. I analyze and interpret real estate trends and maintain a database of economic indicators to provide forecasts.

Regardless of the property type or sector, I believe each has a story to tell and that data provides the opportunity to redefine the narrative. With a background in location analytics, I am highly experienced in interpreting complex data sets. Using the latest technology, I developed a system to blend analytics with a visually attractive approach to bring data to life.

Focusing on business development, I leverage market intelligence and insights for thought leadership content strategy in support of client engagement. My goal is to strategically align research and business development efforts and present research in an easily digestible format that promotes Colliers’ market share and revenue growth.

Colleagues describe me as a brilliant storyteller and a passionate, creative and experienced professional.

Prior to joining Colliers, I served as a business analyst at CBRE, where I specialized in creating tailored research reports, as well as unique and interactive applications and dashboards that elevated the market position of assets.

I delivered weekly research updates with relevant lease and sale comps, custom competitive sets and current market activity. I provided complex market and trend analyses, monitored an extensive database of proprietary market data, and delivered custom quarterly and annual reports that were strategically positioned towards targeted clients. I also led weekly department research meetings to develop initiatives surrounding market trends, produce innovative industry solutions and analyze client-centric objectives.

Previously, I was a GIS analyst for the central region of CBRE. Working exclusively with top-performing markets, I created unique models that illustrated custom real estate datasets through location analytics. I produced high-quality geographic and demographic maps, and investigated multiple approaches to storytelling through map and market analytics.

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Casey Koziol



As a research analyst for Colliers International in Arizona, I deliver in-depth analysis of current market conditions and trends for brokerage professionals and their clients. I compile market statistics across all property disciplines, including industrial, office, retail, healthcare, multifamily and land.

Using various in-house and online resources, I prepare data and background narrative information for market reports, publications and proposals for use by brokers, staff and management to serve the interests of Colliers’ clients.

In support of sales, leasing and business development, I create compelling client-facing presentations that illustrate and interpret real estate and economic trends. I track and analyze all aspects of the commercial real estate market and leverage that knowledge on behalf of Colliers and its clients. I also maintain sales and lease comp databases, monitor tenants-in-the-market activity, and respond to ad hoc research requests.

Clients and colleagues describe me as an ambitious and results-oriented professional, who strives for service excellence. My commitment to integrity, collaborative approach and effective communications make me a valued partner to internal and external clients.

My background includes working with landlord and tenant clients, primarily in the industrial and education sectors. Prior to joining Colliers, I served as a real estate sales and acquisitions intern at Tucson Realty & Trust Company, where I specialized in identifying potential buyers and sellers for commercial properties in the Tucson metropolitan area. Accomplishments included locating a buyer for an industrial storage property in south Tucson and facilitating a 1031 exchange on behalf of a client.

I was also a marketing analyst intern for Keyser Commercial Real Estate in Scottsdale, where I supported business developments efforts thorough researching properties on CoStar for existing and potential clients for the tenant-focused firm.

Outside work, my interests and activities include international travel, professional and collegiate sports, open water diving (I am scuba certified) and a variety of adventure challenges. I am semi-fluent in written and spoken Spanish, after spending a semester in Spain.

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