Despite Phoenix industrial construction activity continuing to slow down in 2025, 11.9 million square feet remain in the pipeline, helping Phoenix remain a well-positioned market for industrial tenants, according to an analysis from Kidder Mathews .
Market Highlights
CONSTRUCTION activity totaled 11.9 million square feet.
DIRECT NET ABSORPTION reached 2.4 million square feet.
TOTAL LEASING ACTIVITY YTD is 11.3 million square feet.
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MARKET DRIVERS
Phoenix remains a well-positioned market for industrial tenants with 460 million square feet in total inventory, making it a booming hub for manufacturing and emerging technologies. The total inventory in