1 INSIGHT

Small warehouse space remains one of the most competitive segments in today’s industrial market.

As construction costs remain high and land availability tight in many markets, the supply of small industrial properties has lagged while demand continues to grow. Small business owners, light manufacturers, service contractors, and owner-users continue to compete for limited inventory. As a result, well-priced units often move quickly.

These properties offer something larger industrial buildings don’t: affordability, flexibility, and manageable size for growing businesses. For tenants and buyers, preparation and clarity matter more than ever.

2 ACTION STEPS FOR INDUSTRIAL TENANTS & BUYERS

• Define your operational requirements before touring – Know your minimum clear height, power capacity (amps/volts/phase), roll-up door size, parking needs, and zoning requirements. Having clear criteria prevents wasted tours and allows faster decision-making when the right property becomes available. And be prepared to act decisively.
• Evaluate total occupancy cost and long-term fit – For tenants, review base rent, CAM charges, and escalations. For buyers, have financials ready, secure pre-approval if purchasing (hint: Look into SBA CDC/504 loan programs that offer 10% down payment), assess mortgage payments, taxes, insurance, HOA dues (if applicable), and maintenance. Also consider whether the space can support moderate growth to avoid relocating.

3 KEY TAKEAWAYS

Early positioning creates advantage – Small industrial inventory remains tight in many markets. Monitoring the market and acting before listings become widely competitive increases success rates.

Flexibility drives appeal – Small industrial properties work well for contractors, light manufacturers, storage users, and growing owner-operators seeking manageable space.

Industrial value starts with usability – Functional layout, sufficient power, and accessible loading areas ensure the space works for your business from day one.