Phoenix is the fastest-growing industrial market in North America with a growth rate of 14.3% in 2022, ahead of Savannah, Georgia, and Houston. The growth is attributed to demand for buildings of 200,000 square feet or larger and a surge in development of warehouses of one million square feet or larger. Third-party logistics companies (3PLs) are the major drivers of the demand, accounting for 34.1% of total leasing in Phoenix. As a result of the high demand for industrial space, the vacancy rate in Phoenix is at an all-time low of 2.7%, resulting in increased rents.
