Flattening vacancy and rental rates signal stabilization in the Phoenix industrial market
The market recorded 2.2 million square feet (msf) of positive net absorption during Q4 2025, bringing year-to-date absorption to 15.2 msf, up 2.0% from the same point in Q4 2024. Despite steady demand, overall market vacancy of 15.3% remains elevated relative to the past five years. Rental rates appear to be stabilizing, having increased by just 1.2% over the course of 2025, suggesting limited near-term pricing momentum. Collectively, elevated yet stable vacancy alongside flat rent growth may indicate the market is nearing an inflection point.