Phoenix Industrial Market
In August 2021, Phoenix surpassed Philadelphia to become the 5th largest city in the United States. A few months later in February, it was reported that the city increases its population by 200 people per day. As the city tallies newcomers daily, the industrial market growth in Phoenix is on pace to pass its record-breaking 2021.
Per an article in the Wall Street Journal in August, Phoenix has over 16,000,000 new square feet of industrial space leased. This puts the city third, behind only Chicago and Dallas/Fort Worth, and ahead of larger industrial markets such as Houston, Atlanta, and the Inland Empire*.
As well, Phoenix is one of only five cities in the United States that has more than 30 million square feet of industrial space under development. Just in the first half of 2022, the total transaction volume was over $1.6 billion*.
So far this year, big companies such as Amazon, Lowe’s, and Puma have signed new leases of over 1 million square feet and there are another five more buildings of over 1 million square feet in construction*.
So why is Phoenix a desirable market?
Well, as our next-door neighbors in California’s cost of living becomes more expensive and the municipalities become stricter on their codes, this leads to more of those businesses moving their HQ here. Even companies on the East Coast and in the Midwest are setting up a presence on the west side of the country to go along with their existing HQ.
What better opportunity than to grow your business in Arizona? With the proximity to the Port of Los Angeles (350 miles from Buckeye) and the availability to take care of 35 million people in a day’s truck drive, Phoenix becomes a great area for a company to place its operations*. With Interstate 10 running through Phoenix and Interstate 40 just two hours north in Flagstaff, Phoenix is right in the middle of dedicated freight lanes. Giving the city the benefit of being able to ship and receive goods through these trucking routes. Finally, to make another point, the weather can’t be beaten. Outside of a few hot months in the summer, there are over 300 days of sunshine, no snow, rare rainfall, and an almost non-existent amount of natural disaster worries.
With the increase in industrial space throughout Phoenix, this in turn gives rise to more warehousing needs. Since 2020, more and more warehouse managers are seeing the need to fix their existing warehousing operations. With increased demand throughout the supply chain, there is a need to make your facility as efficient as possible. Why go through the motions of running a warehouse if you’re not getting the full benefit of a lean warehousing operation?
At Industrial Storage, we can help with your needs. Whether you are moving into a new warehouse or expanding your existing one, we can help make your goal a reality. We pride ourselves on making your warehouse as lean and efficient as possible. Do you need additional racking or shelving? We’ll get you the quantity, size, and specifications you request and get it to you at a competitive price. What about a mezzanine to increase your floor space? We’ll get you the best one so don’t have to sacrifice extra space. Need a better way of getting the material through your space? How about a conveyor or picking carts. We can get you all of your bases covered.
Moving to a new warehouse? Let us pull your permit for you.
So as the industrial sector expands throughout Phoenix and the rest of the country, we at Industrial Storage will continue to grow and be the best material handling solution for you. Contact us today and we’ll get to work for you.
* https://www.bizjournals.com/phoenix/news/2022/08/17/phoenix-metro-industrial-growth.html
