Pickleball facilities. Ghost kitchens. Micro-breweries. Contractors. Last-mile logistics. They’re all competing for the same shallow-bay space, and it’s driving real pricing power.
In a new Commercial Property Executive feature, SRS’ John Darrow and Shannon Johnston break down the shifting dynamics in the shallow-bay marketplace. Bringing together perspectives from both SRS Industrial and SRS Capital Markets, the article offers a full-spectrum view of how leasing demand and investor appetite are converging around this niche.
Key Takeaways:
• Tenant demand is diversifying quickly
• Location still drives value, but more through infill access than traditional visibility
• Capital is rotating into the niche, pushing cap rate compression and rent growth
With rent growth up 40–50% since COVID, shallow-bay has proven that it’s one of the most adaptable property types in today’s market.
Read the full article at Commercial Property Executive.