The Rise of Multi-Tenant Industrial with Anthony Scavo
On this episode of The Matthews™ Podcast, host Matthew Wallace is joined by Anthony Scavo, President and Managing Partner of Basis Industrial, to explore one of the most dynamic sectors in commercial real estate today, the red-hot world of small-bay industrial.
With more than 30 years of experience in construction and development, Scavo has built his career from the ground up, transforming a traditional path in real estate into a playbook for long-term growth and disciplined investing.
From Construction Sites to Managing Partner
Scavo’s introduction to real estate didn’t begin in a conference room. It started on construction sites alongside his father, who spent 55 years with the Lefrak Organization. Scavo joined the firm right out of high school and continued working full-time while earning his degree from NYU’s Stern School of Business.
“It was like building your own little city,” Scavo recalls. “You see something come out of the ground and become home to hundreds of people. It’s addictive.”
After more than two decades at Lefrak and several years with Red Apple Group, Scavo joined Basis Industrial to lead its self-storage division. What began as a focused initiative soon evolved into a breakthrough and a discovery that would define the company’s future.
The Accidental Goldmine
Basis Industrial’s pivot to small-bay industrial came by chance. While converting a warehouse in Orlando into self-storage, Scavo’s team found tenants eager to stay, even offering to pay double the rent.
That moment exposed a powerful market opportunity: smaller, flexible industrial spaces could deliver comparable yields to development projects with less risk and faster income.
Why Small-Bay Works
Small-bay industrial, typically 1,000 to 10,000 square feet per unit, serves as the incubator of the small-business economy. Tenants include HVAC contractors, mechanics, plumbers, e-commerce distributors, and local entrepreneurs, the backbone of day-to-day commerce.
Unlike large distribution centers that depend on a few tenants, small-bay properities host dozen of diverse users. This diversity provides income stability and resilience while operating below replacement cost.
Integration as a Competitive Edge
Scavo attributes much of Basis Industrial’s success to its vertically integrated model, managing acquisitions, construction, leasing, and property operations internally.
When traditional management companies proved ill-equipped for small-bay’s unique demands, Basis built its own infrastructure, enabling faster lease-ups, minimal downtime, and a better tenant experience.
Markets on the Move
Basis Industrial’s portfolio now spans Central Florida and the Dallas–Fort Worth area, two of the most active industrial markets in the U.S. Orlando, Scavo notes, has become their best performer, offering strong rent growth and sustained occupancy.
Today, the firm manages more than 5.5 million square feet across its small-bay and self-storage portfolio and expects to surpass 2.5 million square feet in Orlando alone by next year.
The Basis of Trust
Under Scavo’s leadership, Basis Industrial has grown from three employees to more than fifty in under five years, proof that a disciplined foundation can outperform market cycles.
Roughly 80% of the firm’s transactions now come off-market, driven by word-of-mouth credibility and a reputation for closing deals exactly as promised.
Top Takeaways for CRE Professionals
• Small-bay industrial offers stability, diversification, and long-term upside.
• Limited new supply enhances existing asset value.
• Vertical integration drives performance and accountability.
• Integrity and consistency remain the ultimate competitive advantages.
From construction superintendent to managing partner, Anthony Scavo has proven that real estate success is built on more than timing; it’s built on discipline, trust, and an unwavering focus on fundamentals.
