Phoenix industrial space, with the largest construction pipeline in the country working for you.
Phoenix has more space under construction than any other US market, and that pipeline is the single most useful fact for a tenant here. Semiconductor investment has pulled in suppliers and the absorption to match, but new supply keeps arriving, and landlords are holding headline rents while giving ground on concessions.
Where the leverage sits right now.
Between 15.5M and 18.4M sq. ft. is under construction depending on whose count you use, the largest pipeline of any US market. Much of it is speculative and unleased. A tenant with a 2027 occupancy date can negotiate against buildings that do not exist yet, which is the strongest position available in industrial leasing.
All three firms report vacancy falling and absorption running above 4M sq. ft. for the quarter, so this is not a distressed market. The leverage comes from supply, not weakness. Expect landlords to protect the face rate and concede on free rent, improvement allowance and term flexibility instead. Judge proposals on net effective rent.
Arizona levies a flat 2.5 percent income tax rather than none at all, so Phoenix does not carry the tax advantage Nevada and Texas do. It competes on labor depth, building quality and one-day reach into Southern California.
What the major brokerages report.
Each firm tracks a slightly different building set, and in some markets a different metric, so the figures differ. We show all of them rather than average them, because an average of three different definitions describes nothing. Where the spread matters to a negotiation, we say so above.
| Firm | Quarter | Vacancy | Asking rent | Net absorption | Under construction |
|---|---|---|---|---|---|
| CBRE cbre.com | Q2 2026 | 9.6% | $1.09 | +4.7M sq. ft. | 18.4M sq. ft. |
| Colliers colliers.com | Q2 2026 | 8.7% | n/a | +4.29M sq. ft. | 15.5M sq. ft. |
| Cushman & Wakefield cushmanwakefield.com | Q2 2026 | 10.8% | $1.12 NNN | +6.1M sq. ft. | 16.0M sq. ft. |
Reach, infrastructure, and labor.
Share of the US population within 450 road-equivalent miles (one-day ground) and 1,000 miles (two-day ground) of the market center, computed against population-weighted centroids of all 3,125 US counties (2020 Census). Bands approximate FedEx and UPS Ground zone tables within roughly 10 percent and are for comparing markets, not quoting transit times.
Sources: ofis.trade.gov
Bureau of Labor Statistics, OEWS May 2025; CES 2026. Wage is the mean hourly wage for laborers and freight, stock, and material movers (OEWS 53-7062) in the metro area.
Where the buildings are.
Goodyear, Buckeye and Tolleson along the I-10. The big-box core and where most of the speculative pipeline sits, so the deepest concessions are here.
Chandler, Mesa and Tempe. Closest to the semiconductor investment and the usual choice for suppliers and advanced manufacturing. Colliers put 45 percent of Q2 2026 sales activity here.
Deer Valley and the I-17 corridor, anchored by the TSMC campus. Newer product and a growing supplier cluster.
The operations that choose Phoenix.
We represent tenants and buyers only. No landlord listings in Phoenix, so every building in the market is a candidate and every negotiation is on your side of the table. See the operations we serve.
Evaluating Phoenix?
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