The Industrial Edge

This article originally appeared in AZRE magazine.

Available land and increased infrastructure are propelling industrial development in the Valley’s southeastern and western peripheries.

The past few years have seen unprecedented growth across Greater Phoenix. A favorable business environment, mild winters and an overall high quality of life have attracted corporations from across the nation and globe to the Grand Canyon State. As a result, farmland and empty plots throughout the Valley have rapidly become the sites of large manufacturing and distribution facilities.

“Industrial has been the darling of the recession and the COVID response. It’s the one use that excelled above the rest and had the most energy money and interest behind it,” says Adam Baugh, partner at Withey Morris.

Both the East and West Valley have received the lion’s share of industrial investment. According to Baugh, there’s been nearly 20 million square feet of ground broken so far in 2021. The trifecta of high demand, investor interest and available land have led to atypical behaviors in the market.

“You typically wouldn’t build until you got a user, but demand is so hot that people are willing to build on speculation. Traditionally, developers wouldn’t spend that amount of money because of the risk,” Baugh notes.

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