凤凰工业市场概览

–Southern California’s seaports (the nation’s top trade gateway) had their secondbusiest year on record in 2024. Traffic since has been uneven– Widespread U.S. tariffson foreign goods sent shockwaves across global financialmarkets in early April. This has since been followed by deadline extensions, country-by-country negotiations, and warnings of additional duties.–Business leaders have cautioned that an inconsistent tariff policy will increaseinflation risk and keep volatility high.–Consumer confidence is trending down, and U.S. retail sales will follow whenconsumer prices rise. The sales drop will be precipitous if domestic unemploymentsharply rises.Market Observations‒Leasing volume increased in the second quarter. Demand for quality space remainshigh, with 65% of volume concentrated in Class A buildings.‒Pre-leasing activity is limited amid elevated modern-gen product availability.‒Industrial sales volume totaled $827 million this quarter. Sales will increase in theyears ahead as the region continues to evolve as a major logistics hub.‒BKM Capital and EQT were among the quarter’s top buyers.EconomyMajor Transactions ‒Quarterly net absorption was 5.7 MSF versus 3.3 MSF in construction deliveries. Newsupply additions are slowing as the construction pipeline empties.‒In a welcome change, total vacancy fell for the first time in seven quarters to reach13.0%, down 13.7% from last quarter. Available sublease space increased, however,by 2.3% over the same period, to settle at 8.4 MSF.‒Under-construction activity decreased for the sixth consecutive quarter; 12.6 MSF ispresently underway. Although construction is decreasing as expected, the market stillhas one of the most robust pipelines in the nation as it grows into a major hub.‒The average asking rent increased by 1.9% year over year as the market levels out.‒Phoenix will appeal to distributors priced out of Southern California. Namely, thosethat are warehousing goods with longer dwell times. Lower rents, lower taxes, lessregulation, population growth, infrastructure enhancements and proximity to theMexican border are among factors.‒BNSF will develop a 4,321-acre transportation hub in the North Glendale area that willinclude an intermodal terminal, a warehouse/distribution business park and rail-served sites. Groundbreaking will commence this year, with completion set for 2028.The Phoenix site will link to inland ports in Southern California and Dallas.‒Returning to tariffs: Occupiers tend to adopt a wait-and-see approach during periodsof volatility, which may dampen near-term leasing activity.Leasing Market FundamentalsOutlook N E W M AR K2 1.Economy2.Market Fundamentals3.AppendixTABLE OF CONTENTS 2Q25Economy Source: Newmark Research, CoStarMost availability is concentrated in smaller suites: the average direct listing is 5,492 SF and 50% of available direct space is within suites that are smaller than 9,000 SF. Subleaselistings are much larger on average, reflecting the trend of occupiers looking to downsize their excess space; the average sublease listing is 11,054 SF and 50% of the market’savailable sublease space is situated in suites that are 20,000 SF or larger.Southern California’s Ports: 2024 Was the Second Busiest Year on RecordMarket Segmentation by Square Footage (1,000+ SF Suites)0200,000400,000600,000800,0001,000,0001,200,0001,400,00005,00010,00015,00020,00025,00030,00035,00040,00045,00050,000Total SF AvailableTotal Square Footage of All Available SpacesSublease ListingsDirect ListingsPlease reach out to yourNewmark business contact for this information Source: Newmark Research, CoStarMost availability is concentrated in smaller suites: the average direct listing is 5,492 SF and 50% of available direct space is within suites that are smaller than 9,000 SF. Subleaselistings are much larger on average, reflecting the trend of occupiers looking to downsize their excess space; the average sublease listing is 11,054 SF and 50% of the market’savailable sublease space is situated in suites that are 20,000 SF or larger.Population Has Increased Considerably in Recent DecadesMarket Segmentation by Square Footage (1,000+ SF Suites)0200,000400,000600,000800,0001,000,0001,200,0001,400,00005,00010,00015,00020,00025,00030,00035,000Total SF AvailableTotal Square Footage of All Available SpacesSublease ListingsDirect ListingsPlease reach out to yourNewmark business contact for this information 40,00045,00050,000 Source: Newmark Research, CoStarMost availability is concentrated in smaller suites: the average direct listing is 5,492 SF and 50% of available direct space is within suites that are smaller than 9,000 SF. Subleaselistings are much larger on average, reflecting the trend of occupiers looking to downsize their excess space; the average sublease listing is 11,054 SF and 50% of the market’savailable sublease space is situated in suites that are 20,000 SF or larger.Retail Sales (an Indicator of Warehouse Demand) Continue to ModerateMarket Segmentat