Small bay warehouses are often viewed as one of the less important segments of industrial real estate. But that view is changing as demand for small space storage remains high while supply is limited and the high cost of replacement keeps rising, according to Alex Redfearn, CEO of Redfearn Capital, a private equity CRE firm in Delray Beach, FL.

What is a small bay? There appear to be many definitions. For Redfearn small bays are industrial spaces of 2,500 to 5,000 square feet, usually within a larger building. Each bay consists of an office that occupies about 15% of the space, while the rest is industrial. Typically, they are located in infill areas in industrial areas in major metro markets, In Florida, which include Miami, Tampa, Orlando, Jacksonville, Broward County and Palm Beach, Redfearn told GlobeSt.com.

Small bays are sometimes called “last mile facilities” because they can also serve as warehouses that enable products to reach users quickly. Even Amazon has opened more than 1,000 to facilitate rapid deliveries to its customers.