The Demand for Smaller Industrial Properties: How BaySpace Provides a Solution

A recent report by CoStar Analytics, a leader in commercial real estate information, analytics and news, reveals that while there’s a construction boom for large industrial developments, smaller industrial properties are becoming increasingly hard to find. This situation creates a significant challenge for small- to mid-sized businesses that need compact, efficient spaces to operate and grow. At BaySpace, our properties offer the perfect solution to this growing demand. BaySpace fills the gap in the market by providing smaller industrial spaces that are in short supply. With properties located in various cities throughout Florida, including Altamonte Springs, Cocoa, Deerfield Beach, Melbourne, Medley, Orlando, St. Petersburg, Tampa, and Winter Springs, as well as in Fort Worth, Texas, we cater to businesses seeking industrial spaces in diverse geographical areas.

Flex spaces can help with this shortage because they can be tailored for different uses such as offices or storage, all in one place. This makes it easier for businesses to find the space they need and adapt to changes without having to move.

The report states that even as the stock of U.S. industrial property grows at the fastest pace in more than three decades, shortages of smaller industrial spaces continue. Fewer developers are constructing properties that accommodate smaller tenants. Industrial properties measuring less than 25,000 square feet make up 29% of existing U.S. industrial space, but less than 2% of the industrial space under construction in 2024.

The gap in availability rates between smaller and larger industrial tenants of industrial properties is now the widest CoStar has ever recorded.

Smaller industrial tenants, such as those in the building trades, small manufacturing or logistics, have been impacted by economic pressures from inflation and higher interest rates. At 5.2% vacancy, U.S. industrial space listed as available for lease in properties smaller than 100,000 square feet has increased in recent months but is at near pre-pandemic record lows.

Alternatively, availability rates for properties 100,000 square feet or larger have come back to 2016 levels as the market deals with record completions of unleased big-box distribution center developments.

BaySpace’s current industrial properties accommodating small- to mid-sized businesses include:

  • 8600 NW South River Dr., Medley, FL 33166 (offering 114–19,517-square-foot spaces)
  • 7550 Southland Blvd., Orlando, FL 32809 (offering 464–24,767-square-foot spaces)
  • OIBC: 5730 S Semoran Blvd., Orlando, FL 32822 (offering 464–24,767-square-foot spaces)
  • 3609 Old Winter Garden Rd., Orlando, FL 32805 (offering 484–1,538-square-foot spaces)
  • 1038 Arlington St., Orlando, FL 32805 (offering 5,500–39,500-square-foot spaces)
  • 1255 Belle Ave., Winter Springs, FL 32708 (offering 500–3,000-square-foot spaces)
  • 2442 23rd St N., St. Petersburg, FL 33713 (offering 100–29,000-square-foot spaces)
  • 2885 Electronics Dr., Melbourne, FL 32935 (offering 600–7,700-square-foot spaces)
  • 2624 Aurora Rd., Melbourne, FL 32935 (offering 380–1,200-square-foot spaces)
  • 7715 Ellis Rd., Melbourne, FL 32904 (offering 625–2,400-square-foot spaces)
  • 709 Silver Palm Ave., Melbourne, FL 32901 (offering 1,200-square-foot spaces)
  • 641 Clearlake Rd., Cocoa, FL 32922 (offering 384–756-square-foot spaces)
  • Cocoa Town Plaza: 463 Forrest Ave., Cocoa, FL 32922 (offering 770–1,668-square-foot spaces)
  • Crystal Pointe: 4500 N Powerline Rd., Pompano Beach, FL 33073 (offering 500–7,500-square-foot spaces)
  • Corporex Plaza: 3902 Corporex Park Dr., Tampa, FL 33619 (offering 1,000–6,000-square-foot spaces)
  • Presidents Plaza: 4801 George Rd. Tampa, FL 33634 (offering 1,500–8,000-square-foot spaces)
  • Brandywine Business Center: 3801 Corporex Park Dr., Tampa, FL 33619 (offering 750–33,000-square-foot spaces)
  • DFW Shallow Bay: 2301 Ludelle St., Fort Worth, TX 76105 (offering 1,800–7,200-square-foot spaces)
  • North Lake Business Park: 370 Northlake Blvd., Altamonte Springs, FL 32701 (offering 500–10,000-square-foot spaces)
  • Winter Garden Business Park: 1218 Winter Garden Vineland Rd., Winter Garden, FL 34787 (offering 500–10,000-square-foot spaces)

Is your small- to mid-sized business looking to lease industrial space in the above-mentioned areas? Contact us at leasing@basisindustrial.com or (888) 422-9772 or visit bayspace.com for more information.  

About BaySpace and Basis Industrial

BaySpace is the property management arm of Basis Industrial, a vertically integrated real estate owner and operator formed by industry veterans and sponsors Jay Massirman, Stephen Garchik and Daniel Weinstein. Anthony Scavo, COO/president, runs day-to-day activities of the company. Together, they have over 100 years of combined real estate development and management experience. With deep roots in the self-storage and industrial sectors, Basis currently owns over 2.5 million square feet of self-storage and industrial real estate, and is scheduled to close another 1 million square feet in 2023. Active markets for Basis include South Florida, Pennsylvania, New Jersey, New York, Texas, Boston, Los Angeles, and select urban markets nationwide. In total, sponsors have developed and managed over 13.5 million square feet of real estate assets including self-storage, industrial, retail, office and residential. For more information, visit bayspace.com or basisindustrial.com/.