5×5 with CompStak: Exploring the Phoenix Industrial Market – A Recap with Josh Wyss from Cushman and Wakefield

In this episode of 5×5 with CompStak, host Brian Caldwell is joined by Josh Wyss, Executive Director at Cushman & Wakefield, for a data-rich breakdown of the Phoenix industrial market. In just 25 minutes, the two unpack what’s driving leasing, how developers are navigating oversupply, and why Phoenix is outperforming the competition.

Here are the top five takeaways from the episode.

---

1. Leasing Volume Is Booming

Phoenix is seeing a sharp rise in industrial activity. In Q2 2025, leasing volume hit 6.5 million square feet, a 42% increase quarter-over-quarter and a 53% jump year-over-year. That kind of velocity reflects renewed tenant confidence and demand for modern logistics space.

---

2. Rents Are Catching (and Surpassing) the Inland Empire

Historically, Phoenix trailed the Inland Empire in terms of rental rates—but that’s changing. Industrial rents in Phoenix have occasionally outpaced those in SoCal’s Inland Empire, signaling a market maturation and increasing tenant appetite for well-located, high-quality product.

---

3. Concessions Are Shifting, Especially for Newer Builds

While rents are growing, so are concessions. For properties built after 2020, free rent periods have climbed by 140 basis points since mid-2023. This signals that while demand is high, landlords are still negotiating to stay competitive—especially given the influx of new supply.

---

4. Developers Face Headwinds Amidst Supply Surge

There’s plenty of space on the market—but that’s not all good news. The wave of new industrial deliveries poses a challenge for developers, who now need to differentiate their offerings in a more crowded playing field. Smart buildouts and location advantages are more important than ever.

---

5. From Housing-Dependent to High-Tech: Phoenix Is Diversifying

Phoenix’s industrial sector has evolved. Once largely tied to housing and construction, the region now boasts a diverse economic base including tech, data centers, and manufacturing. That includes a surprising surge in data center activity, driven by climate, infrastructure, and power availability—despite long-standing concerns about water usage.

---

Bonus Insight: Phoenix vs. Vegas

Josh also compares Phoenix to Las Vegas. While both are industrial players, Phoenix wins out with:

• A more balanced economy (vs. Vegas’s hospitality focus)
• Greater supply capacity
• Better long-term positioning for large-scale industrial users

---

🎧 Ready for the full breakdown?

This episode is a must-listen if you want to understand what’s really happening on the ground in one of the country’s fastest-moving industrial markets.