Mangat Group Investing $250M in Small-Bay Industrial Developments Across Phoenix Metro

Mangat Staking $250M on Small-Bay Phoenix Warehouses
CRE Market Beat Take
New small-bay projects across multiple Phoenix subareas underscore investor focus on smaller user demand where vacancy is materially tighter than in large-scale logistics.

The Mangat Group is advancing a program of four small-bay industrial projects across the Phoenix metro area, with a planned investment exceeding $250 million. The initiative targets smaller industrial users through flex space offerings and is focused on multiple locations around the region.

According to the company, the strategy is centered on providing flexible spaces that can be owned by small businesses, with an emphasis on supporting operational growth and long-term stability for occupants. The developments respond to tight availability in the smaller industrial segment, where buildings under 50,000 square feet currently report vacancy between 3% and 5%, a rate that is described as significantly below that of larger logistics facilities.

The first project is located at Glendale Avenue and New River Road and is moving into its second phase. At full build-out, this development is planned to deliver 71 small-bay units totaling approximately 93,000 square feet. Immediately adjacent to this site, a second project is planned that will add 31 units across roughly 84,000 square feet, expanding the cluster of small-bay industrial product at that intersection.

In Laveen, The Mangat Group is planning a small-bay industrial project at the northwest corner of Baseline Road and Loop 202. This development is designed to comprise 28 units totaling about 75,000 square feet, aimed at local and regional businesses seeking smaller footprints within the broader Phoenix industrial market.

A fourth site in Buckeye, at Watson Road and MC 85, will round out the current slate of projects. That development is expected to feature 89 units across approximately 175,000 square feet, creating another node of small-bay industrial space on the western side of the metro area. Together, the four projects are intended to expand the supply of smaller-format industrial space in several distinct subareas of the Phoenix region.

RKAA Architects has been engaged as the architect for the developments, providing design services across the planned portfolio. KCB Contracting will serve as the general contractor, overseeing construction for the projects as they advance through their respective phases.

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