New construction continued to increase to new levels. Metro Phoenix finished in the top five for new construction with over 28 million square feet underway at the end of 2021. The largest projects under construction in Q4 were the first phase Creation Equity’s Airpark Logistics Center, a 2.7 million square foot multi-building development in Goodyear and CRG’s The Cubes Glendale at 1,200,140 square feet. 

Buyer confidence remained high as Q4 recorded $1.7 billion in sales volume, pushing the annual total to over $5.3 billion, which is more than 2019 and 2020 combined. Lack of inventory and buyer competition put upward pressure on pricing with sales prices averaging an all-time high of $152.05/SF. There were 242 sale transactions in Q4, on pace with the 248 transactions for Q3. 

The Phoenix Industrial Market continues to thrive with the low cost of doing business, talented employment pool, and a government friendly business environment. Phoenix has been one of the most resilient markets during the pandemic, setting records over the last couple years and is showing no signs of a slow-down.