Family Office Briefing on research byMarcus & Millichap·May 22, 2026

Phoenix Industrial Market Report - 2Q 2026

Phoenix industrial vacancy is tightening, particularly in big-box properties above 250,000 square feet, as demand catches up to years of aggressive new supply.

IndustrialPhoenixArizona2026

Key Metrics

Metric	Value	Change / Context
Vacancy Rate (250k+ SF)	12%	down >500 bps YoY
Big-Box Leasing Deals (250k+ SF)	25deals	from 11 a year earlier

Metrics extracted from the source report and independently fact-checked. Method →

How a family office could deploy

Co-GP / Platform Capital · share the promote

Partner with an industrial sponsor active in Phoenix's northwest/southwest (I-10/Loop 303) or southeast high-tech corridors through co-GP equity, a GP-stake, or platform capital to share the promote on big-box acquisitions and value-add repositioning as vacancy compresses and the market stabilizes.

Direct / Separate-Account Ownership

Acquire stabilized big-box assets (250k+ SF) directly or via separate account in the I-10/Loop 303 or southeast submarkets leased to 3PL, retail distribution, or advanced manufacturing tenants for control, asset-level customization, and speed of execution.

LP Allocation

Commit as a passive LP into a Phoenix-focused or Southwest industrial fund for diversified exposure, though with no promote participation and limited portfolio influence.

How family offices deploy capital into real estate →

Full report

Marcus & Millichap

Read the full report at Marcus & Millichap →

Building a thesis around Phoenix? Share it confidentially with the Thesis Exchange — we pair you anonymously with family offices running adjacent industrial strategies.

Peer Network · By Invitation

The Thesis Exchange

Share an investment thesis in confidence. We pair you anonymously with up to two other family offices running adjacent strategies. Reviewed by Gallium's editorial team. No vendor pitch.