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2022 Q1 Greater Phoenix Industrial Market Report

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Q1 2022 Phoenix Industrial Hero

Q1 2022 Industrial Market

Strong demand for industrial space compressed vacancy to the lowest level ever witnessed in the market, ending at 4.0 percent, all while delivering 5.6 million square feet of new inventory. Net absorption reached 7.8 million square feet, on pace to top 30 million square feet during 2022. The amount of projects under construction increased 12.3 percent during the past three months to 33.9 million square feet. Rental rates jumped 15.2 percent year-over-year, ending at $0.74 per square foot.

Key Takeaways:
  • Rental rates have increased over 15.2 percent year-over-year
  • The amount of product under construction increased 12.3 percent quarter-over-quarter to 33.9 million square feet
  • Median price per SF is up nearly 28.3 percent year-over-year to $161 per square foot
The Phoenix industrial market remains red hot and consistently performs better each quarter. The industrial labor market is running parallel to the commercial growth. As of February 2022, Phoenix metro had grown its labor force by 89,600 employees compared to February 2021, which represents a 4.1 percent increase. Transportation, Warehousing and Utilities supersector jobs have increased by 4.03 percent, Manufacturing jobs have increased by 3.9 percent, and the Construction supersector jobs increased 3.0 percent over the same period.

The pace of escalating rental rates is making it hard for existing tenant to renew in their existing space, and new to market tenants are having a difficult time finding space. The majority of vacant spaces are receiving multiple offers because of the tight vacancy. With the price gap between the Phoenix market and California markets, developers, tenants, and investors are still seeing the potential growth of industrial product.


Q1 2022 Phoenix Industrial SRC

2022 Q1 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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John Archer



As a research analyst for Colliers in Arizona, John Archer delivers in-depth analysis of current market conditions and trends for brokerage professionals and their clients. He compiles market statistics across all property disciplines, including industrial, office, retail, healthcare, multifamily and land.

Using various in-house and online resources, John monitors real estate transactions and dissects data to analyze and understand what is happening throughout the various property sectors of commercial real estate. John researches and prepares data and background narrative information for market reports and proposals for use by brokers, staff and management, to serve the interests of Colliers’ clients.

Applying his strong background in analytics and research, John tracks all aspects of the commercial real estate market to illustrate and interpret real estate and economic trends. He leverages that knowledge on behalf of Colliers and its clients. John also maintains sales and lease comp databases, monitors tenants-in-the-market activity, and responds to ad hoc research requests.

Clients and colleagues describe John as an outgoing, accountable and respectful professional who collaborates with the team to provide outstanding service to Colliers and its clients. He excels in a deadline-driven environment.

Prior to joining Colliers, John was a real estate agent with the Barclay Group, where he focused on zoning and site selection for property developments. He was also responsible for preparing competitor analyses to dissect performance data.

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