Phoenix’s million-square-foot warehouses are gone as smaller industrial spaces drive deals

Article originally posted on Phoenix Business Journal on May 6, 2026

Phoenix’s streak of mega warehouse sales and leases is quieting down. The available supply of big-box warehouses in the Phoenix metro shrank considerably over the last year, with no buildings amounting to a million square feet or more currently remaining, according to data from Costar.

Now smaller spaces are seeing the bulk of sales and leasing activity, which is expected to continue throughout this year and drive industrial figures. Here are some recent Valley deals including smaller industrial sales and the new companies moving into those spaces.

Another Taiwan firm buys a Deer Valley industrial building

A Taiwanese chemical company bought an industrial building on April 23 in Deer Valley — an area that is now an industrial hotspot due to its proximity to TSMC’s campus.

Cica-Huntek Chemical Technology Taiwan Co. acquired a 25,880 square-foot facility for $8,060,000, according to real estate database Vizzda. It’s located at 1654 W. Knudsen Drive and was built in 2022 on 1.51 acres.

Cushman and Wakefield’s John Pompay and Michael Kitlica represented the buyer, while DAUM Commercial Real Estate’s Trevor McKendry Chris Rogers, Nick Reinhardt, Beau Citron and Nick Fajardo represented the seller, Art Weiss Industrial Properties.

The property previously sold in August 2024 for $5,850,000.

Yamazaki Mazak Corporation officially opened its Mazak Phoenix Technical Center at 2675 W. Buckeye Road in Phoenix on April 28. The company has its U.S. production headquarters based in Kentucky.

The Phoenix facility serves as a service center for manufacturers on the West Coast and includes a call center and access to support personnel for clients. It also offers programming classes and machine demonstrations, along with other educational events.

“Whether those customers are in the semiconductor, aerospace and defense, electric vehicle or medical device industries, Mazak is well entrenched in every major industry in terms of experience and application knowhow.” Tony Harrod, Regional Manager of the Mazak Phoenix Technical Center, said in a statement.

The larger industrial development Mazak’s new center is located in was recently redeveloped by Merit Partners, and was formerly an elementary school that sat vacant for years until it was transformed into a new industrial park, called Merit 27 Buckeye.

The development includes two Class A industrial buildings – the first spanning 191,227 square feet, and the other 65,586 square feet.

Daikin, a Japanese HVAC company, is leasing the larger building, while Mazak shares the second building with other tenants including Reliable Garage Doors, Hajoca and Impilo Inc.

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