PHOENIX — The Mangat Group plans to invest more than $250 million in four flex industrial developments across the West Valley, targeting small businesses squeezed out of a market dominated by large warehouses.
The projects are made up of 219 small units across Glendale, Laveen and Buckeye, each joining small office space with rear warehouse availability, the company said in a press release.
The expansion comes as vacancy rates for industrial buildings under 50,000 square feet hover between 3% and 5%, well below rates for larger facilities, according to Mangat Group.
“Most developers focus on large warehouses,” Mangat Group CEO Tony Mangat said in the news release. “We’re building flex space that allows small businesses to own their space, grow their operations and build long-term stability.”
Units are available for purchase at $350 per square foot. Mangat said population growth and semiconductor investment across the Phoenix metro area are driving demand for flexible space he calls the “missing middle” of industrial real estate.
