Market recovery continues as vacancy declines and rents stabilize
The Phoenix industrial market continued to show signs of recovery in Q3 2026 as sustained tenant demand and slowing deliveries supported improving fundamentals. Vacancy declined 180 basis points (bps) year over year to 13.3%, marking its lowest level since Q1 2024. Net absorption totaled 5.8 million square feet (msf) during the quarter, bringing year-to-date absorption to 12.4 msf, matching the same period last year. Meanwhile, asking rents held steady at $0.87 per square foot (psf) per month for the third consecutive quarter, up 3.5% year over year, highlighting pricing stability as the market absorbed excess inventory.