Kyle Westfall

Logistics users aren't only driving industrial construction in Phoenix, they are driving a niche industrial market. Mid-bay industrial product accounts for nearly half of the total construction pipeline in Phoenix. According to recent research from JLL, there are currently 23 mid-bay industrial facilities totaling 2.5 million square feet under construction in Phoenix. This is 42.1% of Phoenix's total construction pipeline.

“This product type ranges in size from 50,000 to 200,000 square feet. “The product offers flexible space sizes, and with that, the product has great building functionality,” Kyle Westfall, VP at JLL, tells GlobeSt.com. “The functionality, like quality clear heights, truck maneuverability, dock-high loading and high parking ratios, of industrial product is becoming more important to occupiers. That allows for a multitude of different kinds of users to occupy the space.”

Logistics and ecommerce users are among the most active users in the space; however, Westfall says one of the reasons for the popularity of mid-bay product is its demand among a broad range of users. “For developers, this product allows a smaller land site to be put into production,” he says. “As the demand and leasing activity continues to remain strong, a developer doesn't need to go into production on a 50-acre site. While they do, they can also find a 10-acre parcel to build an industrial building that can be really successful.”