Most of the headlines in commercial real estate right now are about big box logistics, data centers, and the ongoing correction in multifamily and office. Generally underdiscussed is the massive supply gap in small bay industrial, the 1,200 to 5,000 square foot spaces where electricians, plumbers, HVAC contractors, detailers, e-commerce operators, and service businesses actually run their companies. The existing stock in most secondary markets was built 30 to 50 years ago, is functionally obsolete, and isn't being replaced. Meanwhile, demand from the skilled trades and local service economy continues to accelerate. The result is a structural imbalance that's only getting wider.

 

This is the segment of industrial we're leaning into hardest right now. New construction of small bay product is rare because it's operationally complex. You're managing 20 to 30 tenants instead of one or two. You need systems, relationships, and a repeatable model to make the economics work. That complexity is exactly what creates the moat. Institutional capital chases single-tenant net lease and big box distribution because it's simple to underwrite and simple to manage. That leaves small bay severely underserved by new supply, which means strong rent growth, fast lease-up, and durable cash flow for operators who know how to execute.

 

We're actively expanding our small bay development program across Michigan, and we're currently in the market for sites. If you know of any industrial-zoned land or underutilized properties that might be a fit, we'd love to hear about it. And if you're interested in learning more about what we're building and how we think about this product type, we'd welcome that conversation too.