Why Shallow Bay Industrial Real Estate

A large, essential segment of the industrial market with strong fundamentals and long-term growth potential.

What is Shallow Bay Industrial?

Industrial real estate is often associated with large, single-tenant distribution centers. Shallow bay industrial represents a distinct segment: multi-tenant properties in infill urban markets, designed to serve small and mid-sized businesses.

Aerial view of a multi-tenant shallow bay industrial park in an infill urban market

Shallow Bay vs. Big Box Industrial

Shallow bay assets require more active management but offer greater flexibility and tenant diversification.

Shallow Bay

  • Multi-tenant
  • 20K-150K SF property size1
  • Infill, urban locations
  • Diverse tenant base
  • Very limited new supply
  • ±3-year average lease term

Big Box / Bulk

  • Single or few tenants
  • 300K+ SF property size
  • Outskirts / logistics hubs
  • Concentrated tenant exposure
  • Higher new supply
  • ±5-year average lease term

1 Speed Bay’s target property size is 100k-250k SF.

A Large and Underserved Market

40%+

of U.S. industrial market2

11B+

square feet total inventory2

#1

lowest vacancy across industrial segments2

2 CoStar. As of December 31, 2025.

What Makes Shallow Bay Compelling

Supply Constraints

Limited new development in infill markets due to land scarcity and high construction costs.

Diverse Demand

Broad tenant base across industries reduces reliance on any single sector.

Shorter Leases

Frequent lease rollover across a diversified tenant base aligns the portfolio with market rents.

Operational Opportunity

Fragmented ownership creates inefficiencies that can be improved through institutional ownership and active management, thus improving tenant experience.

Serving a Diverse Tenant Base

Powering local supply chain businesses that rely on proximity to customers, labor, and transportation.

Equipment Maintenance

Construction Services

Light Manufacturing

E-Commerce

Service Providers

From Fragmentation to Institutional Scale

Diagram contrasting a highly-fragmented shallow bay ownership market with the opportunity for institutional scale

Durable Performance Across Market Cycles

Diversified tenant demand, shorter lease durations, and active management have historically supported resilient occupancy and rent performance.

Learn how Speed Bay approaches investing in shallow bay industrial real estate.

Explore Our Investment Strategy

Occupancy Performance During Downturn3

2008–2011

Average Vacancy

Shallow Bay

8%

Broader Industrial Market

11%

Rent Performance During Downturn4

2008–2011

Rent Decline

Shallow Bay

-1%

Broader Industrial Market

-5%

3 Source: PS Business Parks Annual Reports, CoStar, GreenStreet and the United States Census Bureau.
4 Sources: PS Business Parks Annual Reports and CoStar.