Phoenix Industrial Market Report

Warehouse and distribution demand to remain solid. Multiple tailwinds will combine to support tight operations in Phoenix through this year’s latter half. Contract negotiations at Southern California ports ended in June, supporting a normalized flow of goods through western supply chains. This, in tandem with continued population inflows, should support demand for logistics assets catering to both last-mile and long-distance operators. These solid long-term drivers are helping the market surpass potential hurdles closer in. Phoenix is one of just four major U.S. markets expected to post declining vacancy in 2023, and by the largest margin as well.