Q3 2018 for the industrial market showed 12 of the 17 submarkets with positive absorption and the vacancy rate standing at 7.3 percent. This marks a 110-basis-points (bps) reduction from Q4 2017 and a 190 bps reduction from Q4 2016. Space competition, previously uncommon, is increasingly frequent for tenants and the low vacancy rates have sustained in the face of heaving building. The southwestern Phoenix industrial submarkets continue to see heavy construction and absorption. Out of all the industrial construction in the market, 52.7 percent is distribution facilities in the Southwest Phoenix submarket. During the third quarter, the industrial market absorbed 2.2 million square feet (msf) bringing the year-to-date (ytd) total to 6.2 msf.