Developing Industrial Flex Spaces in Phoenix

Industrial Flex Park

Phoenix's industrial landscape boasts towering warehouses along the I-10 corridor, a testament to the region's economic growth. However, amidst this boom, a critical segment of the market remains underserved: the demand for versatile industrial flex spaces, incubator areas, and contractor garages.

Current Development Trends:

As you drive through Phoenix, the sight of colossal warehouses under construction is hard to miss. These mammoth structures, often exceeding 100,000 square feet and reaching up to 500,000 square feet. However, the development focus largely overlooks the smaller-scale industrial spaces that businesses crave.

The Urgent Demand:

Industrial flex spaces, typically ranging from 1,500 to 10,000 square feet, offer a versatile solution for businesses across various sectors. Their adaptability caters to the specific needs of companies that don't require expansive warehouses. Despite the high demand, these spaces have seen minimal development since the 90s, leaving a significant gap in the market.

The Ideal Development:

Contractor Garages Being Developed

Picture this: a 10,800-square-foot building with six bays, each equipped with 12 feet wide by 14 feet high doors on each side, allowing drive-through access. The building would offer fenced secured yard attached to the back of the building. Alternatively, a 12,000-square-foot space with similar features, designed for ease of use, adaptable to a single user or divisible into six units, each individually metered for utilities. If the building were divided into 6 units, each unit would have 3 phase power with 200 amp service.

The Untapped Opportunity:

Non-industrial Flex Space Use.

Phoenix's rapid growth and the thriving business landscape present an opportune moment for the development of industrial flex spaces. The demand for these smaller-scale industrial units rival the larger warehouses, making it a lucrative market waiting to be tapped. Moreover, Tucson mirrors a similar need with low vacancy rates and an absence of new developments, signaling untapped potential.

The unmet demand for industrial flex spaces in Phoenix signifies an opportunity for developers and investors. By recognizing and catering to the specific needs of businesses requiring smaller-scale industrial spaces, there's potential to drive economic growth while meeting market demands. Let's bridge this gap and pave the way for a more diversified and inclusive industrial landscape in Phoenix and beyond.