Market Trends
- Vacancy continued to climb throughout 2023, up 460 basis points (bps) from Q4 2022. Leading the way is newly delivered vacant product. Yearly deliveries totaled 30.0 million square feet (msf), of which 63.0% remained available at the end of Q4.
- The Southeast Submarket posted the largest quarterly vacancy climb, settling at 9.6% as 4.6 msf of new product delivered in Q4. The largest delivery was in the Southwest, where the 1.2 msf Southern Industrial Center delivered vacant.
- Construction starts totaled 6.1 msf in Q4 and 25.1 msf in 2023. While the yearly construction starts are less than 2022, totaling 53.1 msf, Phoenix’s 2023 starts account for 7.3% of U.S. construction starts, compared to 6.9% in 2022.