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Phoenix Q3 2025 Industrial Market Report
"Data center expansion drives Phoenix industrial construction rebound"
We pride ourselves on our in-depth commercial real estate research. Our specialist teams offer insight into current market trends and predictions for the future to help you make the right real estate decisions.
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"Data center expansion drives Phoenix industrial construction rebound"
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"Puget Sound industrial market slows as absorption declines"
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"Market adjusts further amid continued softening in fundamentals"
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"How construction costs and tenant improvement allowances are shaping office lease terms and market dynamics amid changing tariffs"
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"Overall vacancy increased to 26.6%, up 750 basis points (bps) year over year. Direct vacancy rose 130 bps from the previous quarter to 20.8%, while sublease vacancy held steady."
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"Overall vacancy stands at 39.0%, up 700 basis points (bps) from 32.0% in Q3 2024. Since last quarter, direct vacancy declined by 170 bps, while sublease vacancy edged up to 5.0%."
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"Vacancy declined to 30.8%, down 300 basis points (bps) from 33.8% in Q3 2024. Meanwhile, total available space dropped to 0.6 million square feet (msf), down 0.5 msf, or about 45.0%, from 1.1 million sf in Q3 2024."
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"Overall vacancy increased by 180 basis points (bps) to 23.9%, up from 22.1% in Q3 2024. "
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"Vacancy has climbed to 29.2%, nearly doubling from 17.4% in Q3 2024. More than one-quarter of life sciences space now sits unoccupied, representing one of the highest vacancy rates in the nation."
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"Vacancy rose 540 basis points (bps) from Q3 2024 to 27.0%, driven by an increase in direct vacancy to 21.0%, while sublease availability edged down slightly to 6.0%."