Q3 2021 Industrial Market
At the end of the third quarter there were 20 million square feet under construction, setting yet another high point for the market. The third quarter posted two single transactions totaling more than $100 million, bringing year-to-date investment sale to $2.6 billion, and jumping the median price per square foot to nearly 20 percent year-over-year.
The industrial market shows no signs of slowing down and will finish the year with over 20 million square feet of positive net absorption.
- Rental rates increased by more than 8 percent year-over-year
- Net absorption hit the highest mark in a single quarter, and year-to-date net absorption surpassed all that of 2020
- Median price per square foot is up nearly 20 percent year-over-year to $135
More developers and tenants are noticing the growing activity in the Phoenix market, illustrated in the fact that the largest sale of the quarter was a new-to-market buyer. The activity does not look to be slowing down any time soon.
Arizona’s pro-business economy and workforce development are attracting more high-tech manufacturing companies, which placed the market at the top of multiple site selections for companies looking to relocate.