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Increasing demand for ecommerce purchases to be delivered in one or two days has elevated the importance of smaller and more numerous warehouses. Chip-technology tenants have also shown an interest in these spaces, according to a report, “Small-bay warehouses: A critical link in modern supply chains,” by Nicole Dutra Grinnell, partner, portfolio management; Lisa Strope, vice president, research; Anne Banks Boyd, associate, research, which was published in the November issue of Institutional Real Estate Americas.
“The strength of small-bay industrial real estate in the United States is intrinsically tied to the changing supply-chain landscape, driven by the growth in ecommerce and evolving consumer expectations,” note the authors. “With high barriers to entry for new supply and the need for small-bay space expected to grow, this sector presents a compelling opportunity to capitalize on the evolving dynamics of the modern economy.”
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