Skip to main content Skip to footer

Colliers 2021 Q2 Greater Phoenix Industrial Market Report

Download Report

Q2 2021 Industrial Market

The Greater Phoenix Industrial market is more active than at any time in its history, posting 5.8 million square feet of positive net absorption during Q2 2021. This marks the ninth consecutive quarter of more than 1 million square feet of positive net absorption.

Direct vacancy has decreased 70 bps quarter-over-quarter and 190 bps year-over-year to finish second quarter at 5.9 percent. This is a benchmark for Phoenix, reaching the lowest vacancy rate ever achieved in the market.

Key Takeaways
  • Record level of product under construction, outpacing first quarter
  • YTD net absorption equaled 84 percent of all 2020. On pace to break 20 million square feet in 2021
  • Rental rate continued to increase, up 6.56 percent year-over-year     
3.6 million square feet of new product was delivered during second quarter.

19.1 million square feet are currently underway, marking the highest level of construction activity ever witnessed in the Phoenix market and outpacing the previous quarter volume of 17.8 million square feet.

Investment sales volume during second quarter reached $547 million, bringing the year-to-date total to $1.37 billion.

The median price per square foot increased 4.3 percent over-the-quarter and 15.4 percent year-over-year to $134 per square foot.

IndustrialMarketResearchArizonaColliers1024x972

Colliers 2021 Q2 Greater Phoenix Industrial Market Report

Download Report
Related Experts

Phillip Hernandez

Director, Research | Arizona

Phoenix

As director of research for Colliers in Arizona, Phillip Hernandez is responsible for proactively developing and implementing research objectives and directing all research activity for the Arizona offices.

He provides leading-edge, thought-provoking research and analysis of market data for use in producing quarterly statistical market reports for each property discipline, as well as other ad hoc reports, research projects and presentations. Phillip analyzes and interprets real estate trends and maintains a database of economic indicators to provide forecasts.

Regardless of the property type or sector, Phillip believes each has a story to tell and that data provides the opportunity to redefine the narrative. With a background in location analytics, he is highly experienced in interpreting complex data sets. Using the latest technology, Phillip developed a system to blend analytics with a visually attractive approach to bring data to life.

Focusing on business development, he leverages market intelligence and insights for thought leadership content strategy in support of client engagement. His goal is to strategically align research and business development efforts and present research in an easily digestible format that promotes Colliers’ market share and revenue growth.

Colleagues describe Phillip as a brilliant storyteller and a passionate, creative and experienced professional.

Phillip is an experienced research and business analyst with demonstrated success in the commercial real estate industry.

Prior to joining Colliers, Phillip served as a business analyst at CBRE, where he specialized in creating tailored research reports and unique, interactive applications and dashboards that elevated the market position of assets.

Delivering custom quarterly and annual reports, Phillip ensured that all data and research was strategically positioned towards targeted clients. He also led weekly department research meetings to develop initiatives surrounding market trends, produced innovative industry solutions and analyzed client-centric objectives.

Previously, Phillip was a GIS analyst for the central region of CBRE. Working exclusively with top-performing markets, he created unique models that illustrated custom real estate datasets through location analytics. He produced high-quality geographic and demographic maps and investigated multiple approaches to storytelling through map and market analytics.

View expert

Casey Koziol

Associate

Phoenix

Casey Koziol is an associate for Colliers in Arizona and member of the top-producing industrial team of Don and Payson MacWilliam specializing in industrial real estate sales and leasing in the Sky Harbor Airport area, Southwest Phoenix, and Central Phoenix.

While providing both tenant and landlord representation services, Casey prioritizes his clients’ best interests to ensure their requirements are fully considered and met, from initial steps through final transaction negotiations. Casey works diligently to attract qualified tenants and buyers to his clients’ properties.

Leveraging his research expertise, Casey tracks and monitors market conditions, trends, and tenants-in-the-market to carefully guide clients throughout the leasing, acquisition, and disposition process, ensuring their best interests are represented in the final transaction negotiations. Versatile in his approach, he evaluates short- and long-term objectives, determining market rates, calculating current property values, and forecasting market trends.

Casey has a strong financial background as a finance major and deep market knowledge from his research background and lifelong residency in Arizona. Clients and colleagues describe Casey as an honest, ambitious, reliable, diligent, ethical, dedicated, and results-oriented professional, who strives for service excellence.

Casey joined Colliers in 2019, as a research analyst, delivering in-depth analysis of market conditions and trends. He compiled market statistics across all property disciplines, including industrial, office, retail, healthcare, multifamily, and land. In support of sales, leasing and business development, Casey created compelling client-facing presentations, illustrating, and interpreting real estate and economic trends.

As a participant in Colliers’ unique and intense broker training initiative, Casey paired with various senior brokerage teams for three-month periods. This afforded him the opportunity to work across property types with experienced professionals, while also generating business and building client relationships. He quickly learned to identify sites that deliver the greatest benefit to a client’s day-to-day operations.

Prior to joining Colliers, Casey served as a real estate sales and acquisitions intern at Tucson Realty & Trust Company, where he specialized in identifying potential buyers and sellers for commercial properties in the Tucson metropolitan area.

View expert