Phoenix Ranks 1st Among Industrial Markets In 2024 | Living In Phoenix Arizona
PHOENIX RANKS 1ST AMONG INDUSTRIAL MARKETS IN 2024
LIVING IN PHOENIX, ARIZONA
Phoenix Ranks 1st Among Industrial Markets In 2024
For the Q4 2024 industrial markets ranking report, CommercialCafe looked at key performance indicators across 30 major industrial markets in the U.S., tracking them each quarter. Markets are ranked based on several metric categories: vacancy, pipeline, average rent, upcoming loan maturities, and quarterly shifts in online searches for industrial space. Happily for Arizona, Phoenix ranked first among industrial markets in the fourth quarter of 2024.
Here are some of the key highlights:
Phoenix boasted 1st place among industrial markets in Q4 2024, scoring top marks in three different metrics, all testament to the market’s ongoing expansion.
- Phoenix delivered 7.16 million square feet of industrial space in 2024’s last quarter, placing 1st for this metric.
- The market also placed 1st for its expansion of industrial stock through Q4 deliveries (1.88%).
- Phoenix led the nation in industrial pipeline, with 22.3 million square feet under development — a projected 5.8% inventory expansion.
Overall, Orange County and the Inland Empire in California completed the Q4 podium.
Key National Takeaways
- Overall: Phoenix retained the #1 spot as the best-positioned industrial real estate market, while Orange County and the Inland Empire in California completed the Q4 podium.
- Average rent: All 30 major markets saw yearly increases in average asking rents, with Orange County recording the highest nationwide average rent at $16.2 per square foot.
- Vacancy: The Orange County industrial market was also one of only five major markets to see dropping vacancies quarter-over-quarter, recording the lowest rate in the study at 4.2% in Q4.
- Industrial construction: Across the 30 major markets, the fourth quarter saw 34.5 million square feet of industrial space go online, while a further 188.2 million is currently under construction. Phoenix led both in Q4 deliveries and ongoing pipeline.
- Average sale price: At $458.40 per square foot, industrial space in the Bay Area still nets the highest average sale price nationwide, followed by three other Californian markets in Orange County, Los Angeles and the Inland Empire.
- Loan maturities: Portland, Ore. received top marks for having the lowest share of industrial real estate loans maturing in 2025, followed by Bridgeport, Conn., and Baltimore.
- Search trends: Online search volume for industrial real estate keywords in Q4 was highest in Houston, while Boston recorded the most search interest growth year-over-year.
– more at azbigmedia.com
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Natan Jacobs, Vestis Group
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