Industrial Absorption Spikes to Close 2015

PHOENIX—The Greater Phoenix industrial market is poised to benefit from an accelerating pace of local economic growth in 2016, according to Colliers International of Greater Phoenix. Developers built spec space fairly early in the recovery cycle, which placed a supply overhang on the market at a time where tenant demand for space was uneven. Those conditions have been resolved during the past 12 to 24 months, as many of these spec spaces have secured tenants.

Don MacWilliam, executive vice president at Colliers International in Greater Phoenix, tells GlobeSt.com: “The Southwest Valley industrial market saw increased activity for 2015 specifically in the last three quarters.  Six large transactions totaled almost 2 million square feet and we surpassed our annual net absorption average of 2.8 million square feet. Certain segments of the market exceeded expectations, however to proclaim a healthy overall market, we need to see more deal velocity.  We expect that in 2016.”