Vacancy begins to plateau as market shows signs of stabilization
Vacancy throughout the Phoenix industrial market, while still comfortably in the double digits, has begun to show signs of stabilization. First-generation warehouse inventory continues to weigh on the market, with buildings constructed since 2020 accounting for 38.8 million square feet (msf) of vacancy, comprising nearly 70.0% of total market vacancy. The reprieve in yet another quarter of climbing vacancy has allowed the market to continue to absorb excess supply, as evidenced by 2.6 msf of net absorption in buildings delivered in 2023 and 2024 alone during the second quarter.