When it comes to industrial real estate, institutional capital has long pursued the most visible, massive distribution centers lining America’s highways, anchored by household names such as Amazon, Walmart and others. But beneath this sector lies a $300 billion opportunity: shallow- and mid-bay industrial facilities.
These neighborhood warehouses, tucked into the edges of population centers and surrounded by decades of urban growth, represent more than one-third of U.S. industrial stock yet remain largely overlooked by institutional investors. Unlike distribution centers that function primarily as credit investments vulnerable to interest rate swings and oversupply, shallow- and mid-bay properties offer genuine pricing power driven by scarcity, embedded value-creation opportunities and structural barriers that limit new supply.
With the top 10 owners controlling the majority of the market for distribution centers, the shallow- and mid-bay sector is highly fragmented,
