Small-bay assets continue to anchor industrial fundamentals across the southeast

– Capital allocation toward small-bay industrial assets continues to reinforce its position as a preferred subsector within the broader industrial market. Sustained demand, limited new supply, and resilient rent growth have supported ongoing cap rate compression. Regional cap rates generally center in the high-6% range, with primary markets such as Atlanta and South Florida transacting in the mid-5% range.

– Acquisition activity in 2025 has been led by a concentrated group of buyers, with Town Lane, Brookfield Corporation, and Investcorp as the most active purchasers of small-bay assets across the southeast. Their continued presence in the market underscores sustained institutional conviction in the sector.

– Across the southeast, small-bay industrial continues to benefit from durable tailwinds, including last-mile distribution needs, localized service demand, and limited new supply. These factors have supported stronger occupancy and rent performance relative to larger assets while attracting steady interest from institutional investors and lenders.