The Phoenix industrial market had an extraordinary performance in 2020, which has continued into 2021, with several tenants expanding their footprint in the market at an unprecedented pace. With consumers ordering online and growing reliance on shipping, companies are targeting Phoenix for industrial space as the market can reach 35 million customers within a single day’s drive. Phoenix has become one of the most active data center markets in the nation thanks to Arizona’s tax incentive for data center development, a fast-growing power grid, and few occurrences of natural disasters. Industrial tenants flock to Phoenix for the low cost of doing business and proximity to major markets, such as California.