Five Reasons Phoenix & Beyond Are the Next Industrial Growth Frontier

1. Explosive Population & Labor Force Growth

Phoenix continues to rank as one of the fastest-growing metros in the U.S., adding over 100,000 new residents annually. This influx brings a younger, skilled labor force, ideal for supporting logistics, e-commerce, and advanced manufacturing sectors. Companies are following the people—driving demand for distribution centers, warehouses, and industrial facilities at an unprecedented pace.

2. The Semiconductor & Tech Manufacturing Boom

The $65 billion TSMC semiconductor plant in North Phoenix has become a catalyst for industrial expansion across the region. Alongside Intel’s $20 billion campus expansion in Chandler, these megaprojects are attracting suppliers, logistics firms, and advanced manufacturing tenants, creating a ripple effect of demand for industrial space and infrastructure throughout Arizona.

3. Unmatched Infrastructure & Logistics Connectivity

Phoenix offers strategic proximity to California ports without the high taxes and regulatory burdens. With I-10, I-17, Loop 101, and Union Pacific rail access, the region connects efficiently to Los Angeles, Las Vegas, El Paso, and beyond, making it a prime hub for last-mile delivery, regional distribution, and cross-border trade with Mexico.

4. Business-Friendly & Tax-Advantaged Environment

Arizona consistently ranks as one of the top states for business thanks to its low corporate taxes, predictable regulatory climate, and aggressive economic development incentives. These advantages lower operating costs for tenants and create favorable investment conditions for buyers seeking income stability and long-term appreciation.

5. Tight Vacancies & Rising Rents

Industrial vacancy rates in Phoenix remain **historically low—below 4% in many submarkets—**with rental rates rising over 20% year-over-year in some industrial corridors. Limited land availability near key transportation hubs and population centers is pushing both property values and rents higher, ensuring strong landlord leverage and investor upside.