According to the Q3 Industrial Insight report from the Phoenix office of JLL, metro Phoenix now has more than 10 million square feet of industrial space under construction – the highest level of year-to-date construction activity since 2007. Despite still-rising construction costs, the JLL report cites in-migration and a growing pool of skilled labor as key factors driving the growth. 

“Companies have recognized the favorable operating conditions in the Valley and they are not only driving new industrial construction but are also committing to new spec projects prior to completion of their construction,” said JLL Vice President Riley Gilbert. “Phoenix has not traditionally been known as a pre-leasing industrial market but we are seeing that now, and fully anticipate this trend to continue as the market evolves.” 

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