Episode Details

Small-bay industrial is outperforming multifamily on vacancy, tenant stickiness, and supply constraints. 

We look at why the asset class is working, why you can't build more of it, and what that means for capital allocators in late 2026. Key data points: - Small-bay vacancy around 4% vs. 7.5% for larger industrial - Sub-50K SF buildings trade at a 36% pricing premium - 80% of industrial leasing is for spaces under 50K SF - Only 7% of new construction is under 50K SF - Pipeline down 61% from 2022 peak - 83% of existing small-bay stock built before 2000 - Multifamily: Austin -2.8%, Denver -2%, Tampa -1.8%, Phoenix -1.6% YoY