The local industrial market has served as a model of what recovery can look like, even in hard hit metropolitans like Phoenix whose housing market was crushed. Over the past several years, this sector has regained momentum posting positive absorption consistently for the past 3 years while vacancy has declined steadily from the high of 17% seen at the beginning of 2010. Tremendous strides have been made in the industrial market, but not without minor hiccups. This quarter, leasing activity fell to levels seen at the beginning of 2009, and the steady decline in vacancy rates stalled due to a large amount of vacant delivered space. Even with the slowing of pace so far this year, the sector can be expected to improve in the second half of the year as the local economy continues to ramp up.
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