{"id":174949,"date":"2023-04-18T08:43:25","date_gmt":"2023-04-18T15:43:25","guid":{"rendered":"https:\/\/inbusinessphx.com\/?p=174949"},"modified":"2023-04-18T08:43:25","modified_gmt":"2023-04-18T15:43:25","slug":"third-party-logistics-providers-lead-the-way-in-big-box-warehouse-leasing-activity-in-phoenix","status":"publish","type":"post","link":"https:\/\/staging.inbusinessphx.com\/?p=174949","title":{"rendered":"Third-Party Logistics Providers Lead the Way in Big-Box Warehouse Leasing Activity in Phoenix"},"content":{"rendered":"

\"\"<\/a><\/p>\n

The Phoenix metro is one of the fastest-growing industrial markets in North America due to increasing demand for big-box (200,000 sq. ft. or larger) warehouse space, according to a new report from CBRE<\/a>.<\/p>\n

With a growth rate of 14.3% in 2022, Phoenix ranks as the top growth market in North America. The Valley\u2019s industrial market continues to be driven by a diverse set of occupiers, led by 3PLs for the first time since CBRE began tracking the activity in 2012. 3PLs accounted for 34.1% of total leasing in Phoenix, far above the 21% rate in 2021.<\/p>\n

3PLs typically operate companies\u2019 logistics and warehousing operations on a contractual basis, gaining efficiencies by handling that work for multiple clients simultaneously. As a result of enduring pandemic-era shifts, companies have expanded their reliance on 3PL partners to create resilient supply chains and economically address customer needs.<\/p>\n

In Phoenix, the previous leader in big-box leasing activity – retailers and wholesalers – fell to second place, taking 33.7% of the leasing share, following national trends.<\/p>\n

\u201cDemand from 3PLs continues to increase significantly throughout metro Phoenix,\u201d said CBRE’s Executive Vice President Cooper Fratt<\/a>. “We see 3PLs flock to our market for various reasons, including affordable lease rates, available labor and a new surge of Asian-based 3PLs, many of which are servicing our booming semiconductor industry.\u201d<\/p>\n

Direct vacancy in Phoenix hit a record low of 3.4%, despite construction completions doubling to 20.5 million sq. ft. year-over-year This propelled the taking rents to the sixth highest nationally. Record-low vacancies will reduce what could otherwise be oversupply. Over 30 million sq. ft. of big-box product was under construction at year-end, with 21% pre-leased. New product availability will increase vacancy rates, but it is expected that demand and fewer groundbreakings this year will keep rent growth over 10%.<\/p>\n

CBRE analyzed warehouses of 200,000 sq. ft. and larger because warehouses of that size are used for\u00a0 large-scale national and international product distribution. Encompassing the United States, Mexico and Canada, the big-box report found that industrial facilities had record-low vacancy rates and\u00a0 unprecedented rent growth in 2022, despite record new construction deliveries. Demand was driven primarily by a desire to serve markets with growing populations, modernize space for automation and improve supply chain resilience.<\/p>\n

Matching 2021\u2019s record low, the 2022 direct vacancy rate for North America was 3.3% at year-end, which supported first-year base rent growth of 23% year-over-year. With demand for space at a high, and little space available, a record 455 million sq. ft. is currently under construction, of which 25.3% is pre-leased.<\/p>\n

To read the full report, click here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Phoenix metro is one of the fastest-growing industrial markets in North America due to increasing demand for big-box (200,000 sq. ft. or larger) warehouse space, according to a new report from CBRE. With a growth rate of 14.3% in 2022, Phoenix ranks as the top growth market in North America. The Valley\u2019s industrial market […]<\/p>\n","protected":false},"author":2,"featured_media":163555,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","footnotes":""},"categories":[8],"tags":[5],"class_list":["post-174949","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-real-estate","tag-hot-topics"],"_links":{"self":[{"href":"https:\/\/staging.inbusinessphx.com\/index.php?rest_route=\/wp\/v2\/posts\/174949","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/staging.inbusinessphx.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.inbusinessphx.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.inbusinessphx.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.inbusinessphx.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=174949"}],"version-history":[{"count":0,"href":"https:\/\/staging.inbusinessphx.com\/index.php?rest_route=\/wp\/v2\/posts\/174949\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/staging.inbusinessphx.com\/index.php?rest_route=\/"}],"wp:attachment":[{"href":"https:\/\/staging.inbusinessphx.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=174949"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.inbusinessphx.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=174949"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.inbusinessphx.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=174949"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}