Small-Bay Industrial Undersupply Drives Institutional Appetite

National shallow-bay vacancy at 4.8% with 2.9% rent growth. Redfearn Capital/TPG $628M acquisition of 53 shallow-bay warehouses, Merritt Properties breaking ground in Stafford VA, EastGroup site sale in Miami-Dade, and Metz Industrial Group sells 16K SF warehouse in Roselle NJ at $270/SF. Terreno Realty's Red Hook warehouse purchase at 276% premium in 17 months further underscores scarcity. Institutional investors targeting this segment as big-box faces bifurcation.