Phoenix’s Mid-Bay Industrial Real Estate Boom

Mid-bay Industrial Estate

Phoenix has emerged as one of the top markets for mid-bay industrial real estate, attracting a diverse range of tenants from local businesses to national enterprises. This type of industrial property, typically ranging between 10,000 and 150,000 square feet, offers a versatile solution for various operational needs, making it a sought-after asset in the industrial sector.

The Demand for Mid-Bay Industrial Properties

North Phoenix Industrial Real Estate

Mid-bay industrial properties cater to a wide spectrum of tenants due to their adaptable layouts and strategic design.

Ex: 90,000-square-foot facility with a combination of dock and grade-level loading options.

For instance, such a building might feature two grade-level doors and six dock-high doors per 30,000 square feet. This configuration ensures that if the building is divided for multiple tenants (3 in this case), each unit will have access to both grade and dock loading options.

Versatility and Tenant Appeal

The flexible design of mid-bay industrial spaces in Phoenix makes them ideal for tenants with diverse needs. For tenants who require warehouse and yard space but do not need dock loading, some landlords offer fenced dock areas that serve as secure outdoor storage. This adaptability is crucial in meeting the specific requirements of different businesses, from local companies needing moderate space to national firms requiring substantial warehousing and distribution capabilities.

High Demand and Low Vacancy Rates

The demand for mid-bay industrial properties in Phoenix is robust, driven by a strong mix of local to national credit tenants. This high demand translates to low vacancy rates, making these properties a stable investment. The market's resilience is further bolstered by the presence of large institutional investors, which underscores the attractiveness of mid-bay industrial real estate as a reliable and profitable asset class.

Investment Opportunities

Scottsdale New Industrial Building

For larger mom-and-pop investors, mid-bay industrial properties present a compelling investment opportunity. The consistent demand and low vacancy rates offer a steady income stream and potential for long-term appreciation. With institutions actively favoring this asset, it makes an opportune time for individual investors to explore this asset type.

What’s next?

Phoenix stands out as a premier market for mid-bay industrial real estate, providing versatile and high-demand properties that appeal to a broad tenant base. Whether you're a local business looking for warehouse space or a national company in need of a strategic distribution hub, Phoenix's mid-bay industrial properties offer the flexibility and functionality to meet your needs. For investors, the market's strong performance and institutional interest highlight the potential for stable returns and growth in this dynamic sector. If you are looking for mid-bay industrial space for lease or investment opportunities, fill out the contact form and schedule a call with me.