Phoenix ranks fifth nationally among the markets with the largest share of the top 100 industrial leases in the first half of 2025, according to a new report from CBRE.

Phoenix had four of the top 100 leases, totaling 2.2 million square feet, with 24.4 percent of its transactions being renewals in the first half of 2025.

“Given Arizona’s business-friendly environment, deep and diverse labor base, as well as proximity to the Port of Long Beach, Phoenix continues to see unprecedented demand in the big box industrial space, which includes general Distribution, e-commerce, apparel and food and beverage users, among others. Over the past 24 months, Phoenix has had 9.5 million sq. ft. of absorption in buildings greater than 700,000 sq. ft., and this is a trend we expect to continue,” said Cooper Fratt, executive vice president at CBRE.

Nationally, 3PLs signed 38 of the 100 largest leases totaling 28.9 million sq. ft. in this year’s first half. That’s up from 28 leases in the same period last year.

General retail and wholesale tenants, which held the largest share of the top 100 leases in H1 2024, fell to second with 28 leases totaling 21.4 million sq. ft. E-commerce companies signed just seven leases totaling 4.7 million sq. ft., down from the 31 leases totaling 13.2 million sq. ft. in the same period last year. Many e-commerce firms continue to reassess their operations following a period of substantial growth.

CBRE’s analysis of Phoenix industrial leases also reveals that large occupiers are moving toward smaller industrial lease commitments amid higher rents. This is evident in a drop in mega-warehouse leases—those 1 million sq. ft. and larger— accounting for 13 of the top 100 leases, compared to 31 a year earlier. Furthermore, the average size of leases in the largest 100 declined to 718,000 sq. ft. from 814,000 sq. ft. in H1 2024.

Other top industrial leasing markets include:

Leading Markets For Top 100 Lease Transactions In 2025

To read the full report, click here.