The Greater Phoenix industrial market delivered 10 million square feet of new space in the second quarter, part of the record construction initiated in 2023. Strong net absorption of 5.3 million square feet helped keep the vacancy rate at 9.0 percent. So far in 2024, the market has added 19.7 million square feet, with 12.1 million currently vacant. The Northwest submarkets contributed the most new space, and 28 million square feet are still under construction, with 26.7 percent pre-leased. Despite a rise in vacancy rates, rental rates have continued to increase, though at a slower pace. Sales volume saw a significant improvement in the second quarter, reaching $843 million, the highest in six quarters, with notable transactions including sales near Goodyear Airport and a multi-tenant portfolio.