Phoenix has established itself as one of the most in-demand industrial markets in the country over the past few years. A robust development pipeline combined with intense investor demand caused 2021 sales volume to reach an all-time high. Bolstered by e-commerce and logistics, the need for warehouse space is outpacing supply, creating a competitive investment market. Phoenix has also become a U.S. hub for data centers, due to the state’s business-friendly tax policies and the decreased chance of natural disasters. All these sectors have drawn out-of-state investors to the area in search of high yields compared to neighboring California. Overall, Phoenix industrial is ramping up supply to match the ongoing demand across the Valley.