Small- and Shallow-Bay
Rectangle’s Approach to Small- and Shallow-Bay
Small‑ and shallow‑bay (SSB) industrial properties offer a powerful combination of durable demand, constrained supply, flexible leasing, and e‑commerce‑driven tailwinds. As modern logistics continue to emphasize fast fulfillment and proximity, these infill assets provide stable income, low vacancy, and compelling long‑term growth potential. We position ourselves as specialists in this niche because we believe it offers one of the most attractive risk‑return profiles in today’s real estate landscape.
SSB buildings are designed for agility. Modular layouts attract a diverse range of tenants, keeping vacancy rates approximately 290 basis points lower than bulk, further supporting steady rental growth.
Developing new SSB space is costly and constrained—an imbalance that continues to drive sustained rent growth for existing properties. At the same time, the rise of e-commerce fuels strong and consistent demand for these assets.
Typically under 75,000 square feet with shallow bay depths, SSB assets are ideally suited to serve as last-mile distribution hubs. Their infill locations near population centers help reduce transportation costs and accelerate delivery times.
Over the past 15 years, industrial real estate has outperformed multifamily and other commercial asset types—with SSB playing a significant role in that growth.
Examples of Rectangle’s SSB Approach at Work
