Industry Articles and Reports
Small Bay Industrial Space to Remain Scarce
Small bay industrial space remains in high demand with a scarcity expected to persist into 2025 and beyond, despite potential economic boosts from tax cuts and reduced business regulations. Factors such as high mortgage rates and tariff uncertainties continue to constrain expansion in the U.S. distribution network, contributing to the challenge of finding smaller industrial properties under 50,000 square feet.
Small Bays Warehouses Are Becoming Big-Time Targets
Small bay warehouses, typically ranging from 2,500 to 5,000 square feet, are becoming increasingly valuable due to high demand and limited supply, especially in major metro areas. Investors are drawn to these spaces because of low vacancy rates, flexible leasing, and potential inflation protection, despite rising construction costs that limit new development.
Small-Bay Warehouse Space is Increasing in Demand in Charlotte and Beyond
The demand for small-bay warehouses in Charlotte has surged due to factors like increased online shopping, high construction costs, and the need for flexible lease terms, with occupancy rates remaining low. These smaller, light industrial spaces, typically under 100,000 square feet, are now considered highly valuable for both small businesses and investors seeking adaptable spaces in urban locations.
Scaling Success: Small-Bay Industrial’s Steadfast Foundations
Small-bay industrial properties, typically under 50,000 square feet, are experiencing record-low availability despite high demand driven by factors such as supply chain optimization, e-commerce growth, and onshoring. With limited new construction and increasing tenant demand, small-bay spaces are expected to remain in short supply, leading to continued rent growth and strong investment opportunities.
What to watch in 2025: Small bay industrial space to remain scarce regardless of US economic performance
The shortage of small-bay industrial space in the U.S. is expected to persist into 2025 due to limited new development, high land costs, and the ongoing demolition of small industrial properties for larger projects. Despite economic uncertainties and challenges like higher interest rates, the demand for small bay spaces remains high, making them a valuable asset for investors and businesses needing flexible industrial options.
Shallow Bay Industrial’s Deep Potential
Shallow bay industrial properties near urban centers are attracting investors due to their prime locations and strong demand. Their proximity to dense populations reduces costs and enhances delivery speed, especially for e-commerce. Limited new supply and rising rents make them highly profitable assets.
Is Small Bay Light Industrial Real Estate’s Best Kept Secret?
Small bay light industrial properties have emerged as a promising segment in commercial real estate, offering advantages such as inflation protection, tenant diversification, supply constraints, and flexible lease terms. These factors position small bay light industrial spaces as an attractive investment option for real estate investors.
Small Bay Market Emerges as Strong Industrial Performer
Small-bay industrial properties, typically accommodating multiple tenants in spaces ranging from 1,000 to 10,000 square feet, are emerging as strong performers in the industrial real estate sector. These properties benefit from tighter supply and attractive investment characteristics, including a diverse tenant mix, which enhances their appeal to investors.
The Rise of Shallow-Bay Multi-Tenant Industrial Properties
Shallow-bay multi-tenant industrial properties are gaining popularity among investors due to their flexibility, strong occupancy rates, and the ability to quickly adjust rents to match market rates. However, the supply of these properties is limited due to high construction costs, land constraints, and a shift toward larger developments, making them an increasingly valuable asset in high-demand markets.
Overlooked Opportunities in the “Small Bay” Light Industrial Real Estate Subsector
The article discusses overlooked opportunities within the small bay light industrial real estate subsector, highlighting its potential for investment and growth. It emphasizes factors such as increasing demand, strategic location advantages, and the potential for optimizing space efficiency in this niche market.
Small-bay warehouses: A critical link in modern supply chains
The article discusses the growing importance of small-bay warehouses in the modern supply chain, particularly driven by the rise of e-commerce and the need for rapid delivery. Despite the high demand, the availability of these warehouses remains low, making them an attractive investment opportunity, especially due to their adaptability for various uses and shorter lease terms.
