PHOENIX — The cost of renting industrial and logistics properties has been going up nationwide, and few places have seen prices rise as much as the Phoenix metro.
The Phoenix market came in at No. 11 in the nation after seeing a 12.1% year-over-year jump in base rents for industrial space, according to a new report from CBRE Group Inc. [cbre.us], which used figures from late 2020 and the early months of 2021.
More companies are entering or expanding in Arizona, so the Valley’s strong rental growth is not expected to abate anytime soon, according to one expert.
“Our current supply levels cannot keep up with the increasing demand from local as well as out-of-state companies that are attracted to the area’s high standard of living, relatively lower operating cost when compared with coastal regions, skilled workforce and business-friendly environment,” said Phoenix-based CBRE First Vice President Evan Koplan in a statement. “That’s why we will continue to see rent growth.”
CBRE cited high demand and low vacancy rates for the current situation, which has led to lessees paying more than asking rates for properties.
Read more of this story from the Phoenix Business Journal.