Build Small Bay Warehouses in Phoenix Now
The Phoenix metro area is experiencing unprecedented growth, particularly in the West Valley. From the development of single-family home subdivisions to the rise of multifamily apartments and the expansion of big box industrial real estate, specific areas like Glendale and Goodyear are rapidly transforming. This growth, while exciting, highlights a significant gap in the market—small bay industrial spaces.
Big Box vs. Small Bay: Understanding the Difference
Big Box Industrial Development in Buckeye
Big box industrial real estate, typically classified as warehouses 500,000 square feet and up, has been the focal point of much of this development. These massive facilities cater to large corporations with extensive storage and distribution needs. However, while the demand for big box spaces is robust, it’s important not to overlook the smaller players in the market.
Small bay industrial spaces, generally under 20,000 square feet, serve a different but equally crucial purpose. These spaces are ideal for local and regional tenants who don’t require vast amounts of space but still need functional, flexible environments for their operations. Whether it’s small-scale manufacturing, local distribution, or specialized trades, these smaller tenants form the backbone of a diverse and resilient industrial ecosystem.
The Growing Need for Small Bay Industrial Development
New Phoenix Small Bay Warehouse Development (East Valley)
Despite the explosive growth in other sectors, there has been a notable lack of new small bay industrial developments in the Phoenix area. This absence is particularly glaring given the region’s expansion. As new residential communities spring up and large industrial complexes dominate the landscape, small businesses and regional operators are left with limited options.
This shortage of small bay industrial spaces could have long-term implications for the market. Without these smaller, more accessible facilities, local businesses may struggle to find appropriate locations to grow and thrive. Additionally, the lack of new developments could drive up rents for existing small bay spaces, creating further challenges for these tenants.
Opportunities in the West Valley
Lack of Small Bay Inventory West Valley
The West Valley, with its rapid growth and increasing population, represents a prime opportunity for small bay industrial development. As Glendale and Goodyear continue to attract new residents and businesses, the demand for smaller, more versatile industrial spaces will only increase.
Developers who recognize this need and act on it could find themselves well-positioned in a market that’s ripe for diversification. By catering to the underserved small bay industrial sector, there’s an opportunity to create a more balanced and sustainable industrial real estate landscape in the Phoenix metro area.
As Phoenix continues to grow, the industrial real estate market must evolve to meet the needs of all tenants, not just the largest ones. The lack of new small bay industrial developments is a gap that needs to be addressed. By focusing on the development of these smaller spaces, the Phoenix market can ensure that it remains a thriving, dynamic place for businesses of all sizes.
