While the Phx-East Valley’s Industrial property vacancy rate is higher than the Phoenix area overall, asking rental rates for industrial properties have increased in the Phoenix area overall, including the Phx-East Valley.
Despite the higher rental rates and higher vacancy rate in the Phx-East Valley than the Phoenix area at large, the Phx-East Valley is experiencing it’s share of growth in the industrial market.
The vacancy rate went from 11.9% in the previous quarter to 12.4% in the second quarter in the Phoenix area overall, 11.5% vacancy rate for warehouse space and 19.7% vacancy for Flex. The asking rental rates increased to $6.40 on average, with the warehouse rate at $5.52 and Flex rate at $11.34.
By comparison the vacancy rate of industrial property in the Phx-East Valley area for the second quarter of 2013 was 12.8%, 11.7% vacancy rate for warehouse property and 18.6% for Flex in the Phx-East Valley. The asking rental rates in the second quarter of 2013 were $7.52 on average, $6.46 for warehouse and $11.46 for Flex property in the Phx-East Valley.
The industrial market in the Phoenix area saw a net absorption of 471,635 in the second quarter of 2013 (372,306 of which was in the Phx-East Valley), compared to a positive absorption of 1,395,312 in the first quarter of 2013.
The Phx-East Valley also leads the entire Phoenix area in terms of industrial under construction RBA, with 1,641,234 RBA, 87.3% of which is pre leased.
This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.