CompStak and Faropoint Unveil Report on Small-Bay Industrial Real Estate Trends Across Nine Key U.S. Markets

New report highlights pricing premiums, tenant diversity, and investment opportunities in a rapidly evolving segment of the industrial sector.

NEW YORK, NY – [July 10, 2025] — CompStak, the leading provider of commercial real estate data and analytics, and Faropoint, a tech-enabled real estate investment firm specializing in small-bay industrial properties, today released a new report titled “Beyond the Big Box: Spotlighting Small-Bay Industrial Trends.” The report analyzes performance trends in small-bay industrial buildings, defined as under 150,000 square feet, and reveals how these assets differ from bulk warehouses in rent pricing, lease structure, and tenant composition.

The research spans nine major U.S. markets, including Southern California, Chicago, the Bay Area, Atlanta, New Jersey, Dallas-Fort Worth, and Miami-Fort Lauderdale.

“Reliable data on small-bay performance has been hard to come by, making it difficult for investors and operators to act with confidence,” said Michael Mandel, Co-Founder and CEO of CompStak. “This report gives the industry a clear lens into what’s driving demand and how the segment is evolving.”

Key Takeaways:

• Small-bay industrial commands a consistent rent premium over bulk properties. In 2023, rents averaged 22% higher, with premiums remaining in the double digits through 2024.
  
• Lease terms are shorter, averaging under four years for multi-tenant small-bay leases, about 37% shorter than bulk industrial leases.
  
• Single-tenant small-bay leases command higher rents across most markets, especially in the 50,000–99,999 square foot range, where the premium reached up to 20% in 2024.
  
• Top-performing markets for rent growth and premiums include Chicago, the Bay Area, and Miami-Fort Lauderdale, with Atlanta standing out for strong multi-tenant rent growth.

Small-bay properties typically feature lower ceiling heights, higher office-to-warehouse ratios, and urban infill locations that make them attractive for a diverse range of tenants, from HVAC contractors and light manufacturers to last-mile distributors and regional service providers.

“This asset class offers the flexibility and location advantages today’s industrial users demand,” said Adir Levitas, CEO of Faropoint. “For investors, small-bay assets present compelling upside in both yield and long-term appreciation.”

The report also explores differences in performance between single-tenant and multi-tenant buildings, with single-tenant leases generally achieving higher rents but also carrying different operational risks. Market-level variations are notable, with some metros showing negative rent premiums in 2025, underscoring the importance of localized data.

As macroeconomic conditions stabilize, small-bay industrial is expected to remain a critical component of diversified real estate portfolios, supported by its resilience, tenant diversity, and strategic positioning in land-constrained urban areas.

Click here to download the full report.

About CompStak
CompStak is the leading platform for commercial real estate data, providing thousands of brokers, investors, and asset managers with access to granular lease and sale comps, property details, and market analytics. Learn more at www.compstak.com.

About Faropoint
Faropoint is a tech-enabled, vertically integrated real estate investment manager specializing in urban logistics within the US industrial sector. With approximately 120 employees, Faropoint leverages data and deep market relationships to address inefficiencies in the industrial real estate market. The firm operates in 16 key US markets, securing off-market deals through its extensive broker network and strong local presence. Since its inception in 2012, Faropoint has acquired over 500 warehouses, representing more than $3.5 billion in industrial real estate assets. For more information, visit Faropoint.com. For inquiries or to learn more about Faropoint’s investment strategies, please contact Ori Regev, SVP, Head of Product Marketing, at ori@faropoint.com.

Media Contact:
Brigette Palombo

marketing@compstak.com