While large logistics hubs and distribution centers have garnered most of the attention in the industrial real estate sector, the lesser-known multitenant small-bay industrial segment is equally compelling.
Better known as light industrial, this segment is characterized by smaller unit sizes, a diversified tenant base, and strategic proximity to urban centers, which make it uniquely suited to address the rising demand for last-mile logistics, flexible manufacturing, and research and development spaces, according to a BKM Capital Partners white paper. Small-bay industrial accounted for a significant share of industrial leasing activity last year, with warehouses of less than 100,000 square feet logging 3.9% vacancy compared with 6.7% for larger facilities.
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