Phoenix Industrial 1031 Outlook

Phoenix industrial demand remains elevated thanks to manufacturing expansions, e-commerce, and population growth. Investors use exchanges to secure modern logistics facilities backed by strong tenants.

Vacancy Rates and Rent Growth

Vacancy sits below five percent across the Loop 303, West Valley, and Mesa Gateway corridors, keeping rent growth in the mid-single digits.

Tenant Credit Considerations

• Prioritize tenants with long-term production commitments in Arizona.
• Review corporate guarantees and parent company balance sheets.
• Evaluate relocation risk by comparing facility specs and labor pools.

Key Takeaways for 1031 Investors

Structured due diligence around tenant credit, environmental liabilities, and replacement cost helps Phoenix investors secure resilient industrial income.