Real Estate Supporting Local Businesses and the Global Supply Chain.
E-Commerce Driving Need For More Warehouses
Consumer shopping patterns are changing. For the vast majority of the global population, online shopping has become a part of everyday shopping habits. Shoppers are no longer walking into traditional brick-and-mortar stores to purchase goods, and now prefer to do their shopping from their fingertips on their mobile phone or computer. With the explosion of e-commerce and online shopping in the 21st century, industrial real estate is well positioned to see growth for years to come. As of 2024, US e-commerce represents roughly $1 trillion in total revenue. That figure is expected to grow to $2 trillion by year 2029 as e-commerce is further adopted. Many retailers have been forced to accelerate the need for inventory management and direct to consumer storage facilities, creating new and growing opportunities in the industrial real estate sector.
Shallow Bay indsutrial buildings are traditional warehouse buildings, but often with a shallower building depth. This allows the building to be chopped up to serve multiple tenants while still providing ample loading, a major criteria for tennats in today’s market.
Over the last decade, developers have been focusing on larger bulk distribution building projects; and in the Post-Covid era where demand from larger occupies has subsided, these buildings now remain vacant and obsolete for smaller tenants.
All the while, quality multi-tenant facilities that have a shallow bay depth have remained healthy and steadfast from a tenant demand perspective. These buildings provide flexibility from a tenancy perspective, catering 25,000-100,000 SF tenants. With very limited new supply on the horizon, and a robust base of tenant demand, we believe shallow bay buildings present some of the strongest fundamentals for long term growth and asset appreciation in the entire commercial real estate sector.
Shallow Bay Industrial
Industrial Outdoor Storage
Often referred to as IOS, Industrial Outdoor Storage properties are industrial spaces typically featuring a significant outdoor area, primarily used for storage, heavy industry, or vehicle and truck parking. These properties may have minimal or no building structures, while some include facilities for equipment servicing, warehousing, or a small office component for business or administrative purposes. The effectiveness of outdoor storage areas is more dependent on the location and land improvements than on the buildings themselves. These outdoor spaces are ideally suited for storing vehicles, equipment, bulk goods, containers, or finished products.
The IOS sector has become one of the most sought-after niches within industrial real estate since the Covid19 pandemic, with rapidly increasingly institutional activity year over year.
