Shallow- and mid-bay industrial assets are emerging as the quiet outperformers of the industrial real estate sector. As Craig A. Spencer, the chairman and CEO of Arden Group, explains, these infill, multi-tenant properties — typically less than 250,000 square feet — serve as critical infrastructure for local service providers, regional distributors and small businesses. Despite their essential role, the market remains highly fragmented and significantly undersupplied, creating a powerful opportunity for institutional investors who have the operational capability to aggregate and professionally manage these assets.
What exactly are shallow- and mid-bay industrial properties, and why are they getting so much attention lately?
Shallow- and mid-bay industrial a
