In 2025, industrial development is expected to continue decelerating, in response to the rapid expansion seen early in the decade. But the good news for Valley residents is that the Phoenix industrial pipeline ranks No. 3 among the largest in the U.S.

CommercialSearch’s newest report highlights the markets with the newest industrial supply underway, as well as the largest properties scheduled for delivery this year. For this, we used CommercialEdge data on ongoing construction of industrial real estate.

Here are some of the key highlights:

• The Phoenix industrial pipeline places 3^rd among the markets with the most industrial real estate under construction at the start of 2025. The total of 17.7 million square feet of industrial space currently under development will expand the current inventory by 4.1%.
• Phoenix claims one of the top 20 largest industrial developments currently under construction with a projected 2025 completion date: the 3,500,000-square-foot TSMC Arizona chip plant owned by Taiwan Semiconductor Manufacturing Company, ranked 6^th. The project was completed earlier in Q1 2025.
• At a national level, there is currently 346.2 million square feet of industrial space under construction across all industrial markets in the U.S., amounting to 1.7% of current national stock.

Key Takeaways

• Pipelines continued dropping across most markets, with nationwide industrial space under construction down 25% year-over-year.
• Five of the 10 markets with the largest pipelines at the start of 2025 had less industrial space underway compared to the same time in 2024.
• Savannah, Ga., claimed the top spot for industrial development with 24.7 million square feet of space under development.
• Hyundai’s 17-million-square-foot electric vehicle plant is set to become 2025’s largest industrial project upon its full opening early this year, driving much of Savannah’s pipeline.
• Five of the largest industrial projects scheduled for completion this year are EV plants or EV battery plants. The list also includes one chip plant and one data center.
• All 10 of the largest industrial completions of 2024 were logistics facilities, eight of which were multi-building expansions in industrial parks.

You can find additional information about this topic in our full report: https://www.commercialsearch.com/blog/national-industrial-construction-report/

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