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Colliers 2021 Q2 Greater Phoenix Industrial Market Report

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Q2 2021 Industrial Market

The Greater Phoenix Industrial market is more active than at any time in its history, posting 5.8 million square feet of positive net absorption during Q2 2021. This marks the ninth consecutive quarter of more than 1 million square feet of positive net absorption.

Direct vacancy has decreased 70 bps quarter-over-quarter and 190 bps year-over-year to finish second quarter at 5.9 percent. This is a benchmark for Phoenix, reaching the lowest vacancy rate ever achieved in the market.

Key Takeaways
  • Record level of product under construction, outpacing first quarter
  • YTD net absorption equaled 84 percent of all 2020. On pace to break 20 million square feet in 2021
  • Rental rate continued to increase, up 6.56 percent year-over-year     
3.6 million square feet of new product was delivered during second quarter.

19.1 million square feet are currently underway, marking the highest level of construction activity ever witnessed in the Phoenix market and outpacing the previous quarter volume of 17.8 million square feet.

Investment sales volume during second quarter reached $547 million, bringing the year-to-date total to $1.37 billion.

The median price per square foot increased 4.3 percent over-the-quarter and 15.4 percent year-over-year to $134 per square foot.


Colliers 2021 Q2 Greater Phoenix Industrial Market Report

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Related Experts

Phillip Hernandez

Director, Research | Arizona


As research manager for Colliers in Arizona, Phillip Hernandez is responsible for proactively developing and implementing research objectives and directing all research activity for the Arizona offices.

He provides 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. Phillip analyzes and interprets real estate trends and maintains a database of economic indicators to provide forecasts.

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

Focusing on business development, he leverages market intelligence and insights for thought leadership content strategy in support of client engagement. His 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 Phillip as a brilliant storyteller and a passionate, creative and experienced professional.

Prior to joining Colliers, he served as a business analyst at CBRE, where he specialized in creating tailored research reports, as well as unique and interactive applications and dashboards that elevated the market position of assets. Phillip delivered weekly research updates, with relevant lease and sale comps, custom competitive sets and current market activity.

He 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. He also led weekly department research meetings to develop initiatives surrounding market trends, produce innovative industry solutions and analyze client-centric objectives.

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

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Casey Koziol



Casey Koziol is a sales assistant for Colliers in Arizona, specializing in landlord and tenant representation for the sale and leasing of office and industrial properties.

He prioritizes his clients’ best interests to ensure their requirements are fully considered and met, from initial steps through final transaction negotiations. Casey works diligently to attract qualified tenants and buyers to his clients’ properties.

As a lifelong resident of Arizona, Casey’s in-depth knowledge of the MSA enables him to identify sites that deliver the greatest benefit to a client’s day-to-day operations. His financial acumen ensures clients’ return on investment meets their expectations.

Leveraging his research expertise, Casey tracks and monitors market conditions, trends and tenants-in-the-market to guide clients towards informed real estate decisions that support their business.

As a participant in Colliers’ unique and intense broker training initiative, Casey pairs with various senior brokerage teams for three-month periods. This affords him the opportunity to work across property types with experienced professionals, while also generating business and building client relationships.

Clients and colleagues describe Casey as an ambitious and results-oriented professional, who strives for service excellence. His integrity, collaborative approach, effective communications and creative problem-solving make him a valued partner to his clients and team.

Casey joined Colliers in 2019, as a research analyst, delivering in-depth analysis of market conditions and trends. He compiled market statistics across all property disciplines, including industrial, office, retail, healthcare, multifamily and land. In support of sales, leasing and business development, Casey created compelling client-facing presentations, illustrating and interpreting real estate and economic trends.

Casey’s background includes working with landlord and tenant clients, primarily in the industrial and education sectors.

Prior to joining Colliers, Casey served as a real estate sales and acquisitions intern at Tucson Realty & Trust Company, where he 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.

Casey was also a marketing analyst intern for Keyser Commercial Real Estate in Scottsdale. He supported business development efforts through researching properties on CoStar for existing and potential clients for the tenant-focused firm.

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

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