{"id":1004777559,"date":"2026-04-01T01:00:09","date_gmt":"2026-04-01T09:00:09","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004777559"},"modified":"2026-04-14T03:05:21","modified_gmt":"2026-04-14T11:05:21","slug":"phoenix-industrial-market-update","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/phoenix-industrial-market-update\/","title":{"rendered":"Phoenix\u2019s Industrial Market Still a Standout"},"content":{"rendered":"
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\"A<\/a>
ReDiscover Industrial Park will comprise four buildings ranging from 189,280 to 212,000 square feet. Image courtesy of JLL<\/em><\/figcaption><\/figure><\/div>\n\n\n

Phoenix\u2019s industrial market closed 2025 with one of the country\u2019s most active development pipelines, supported by continued deliveries and strong investment volume.<\/p>\n\n\n\n

Construction activity remained well above national averages, with the metro ranking near the top of its peer set for both pipeline and completions. Investment activity also stood out, with Phoenix posting the highest pricing among major industrial markets. Early 2026 figures pointed to continued sales momentum, while vacancy trended above the U.S. average, according to Yardi Matrix.<\/p>\n\n\n\n

Development pipeline remains elevated<\/h2>\n\n\n\n

By year-end 2025, Phoenix recorded almost 17.7 million square feet of industrial space under construction. A total of 100 facilities were under development, accounting for 4 percent of total stock, much higher than the 1.7 national average. Dallas (28.7 million square feet) was the only gateway market with a larger pipeline than Phoenix, while Indianapolis (6.4 million square feet), Philadelphia (4.7 million square feet) and Kansas City (3.5 million square feet) lagged behind.<\/p>\n\n\n\n

Developers broke ground on 13.7 million square feet of industrial space through year-end, spread across 99 facilities, according to Yardi Matrix data. <\/p>\n\n\n

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\"LG<\/a>
LG Energy Solution\u2019s $5.5 billion development in Queen Creek, Ariz., represents the largest-ever single investment for a stand-alone battery manufacturing facility in North America. Image courtesy of the Town of Queen Creek<\/em><\/figcaption><\/figure><\/div>\n\n\n

One of the largest projects underway is Seoul-based LG Energy Solution\u2019s $5.5 billion battery manufacturing complex<\/a> in Queen Creek, Ariz., the largest-ever single investment for a stand-alone battery manufacturing facility in North America. The development includes two manufacturing facilities valued at $3.2 billion and $2.3 billion, respectively\u2014one for cylindrical batteries for electric vehicles and the other for lithium iron phosphate pouch-type batteries for energy storage systems.<\/p>\n\n\n\n

In November, ViaWest Group and Barings obtained $107 million in construction financing for ReDiscover Logistics Park<\/a>, an 808,448-square-foot industrial project in Phoenix. Located at 2402 W. Beardsley Road in the Deer Valley submarket, the development will include four buildings ranging from 189,280 to 212,000 square feet, featuring 32- to 36-foot clear heights.<\/p>\n\n\n\n

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CPE Daily Newsletter<\/h2>\n\n\n\n

Every weekday, every important CRE story.<\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n

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