After a mid-year lull with increased vacancy and negative absorption, the industrial sector ended the year on a positive note with net absorption posting an impressive 2,799,105 SF. This boost was needed following two negative net absorption quarters totaling -984,698 SF absorbed. While the sector is still in the early stages of recovery, the increased activity and new construction deliveries indicate long term improvement. Over the next year, as deliveries begin to slow after the surge in 2013 and tenant demand increases as confidence is rebuilt, vacancy levels will constrict and help stabilize the sector as it begins to fully recover. The dramatic increase of space places Phoenix in a “prepared” position to accommodate a range of big box users with immediate requirements that will be necessary as the local market rebuilds and flushes out smaller, older space to accommodate the new wave of larger tenants.