Tim Logan wrote an article in Area Development about a post-pandemic demand emerging in the industrial market for the construction of space for smaller end-users.

The construction pipeline to build large, 100,000-plus square foot industrial sites was seemingly bursting at the seams during the height of the pandemic, Tim wrote. 

"Those companies that struggled to find the right facility in the 10,000 to 49,000 square foot range at the height of the industrial market boom are again looking for space," Tim wrote. 

Tim wrote about the demand for smaller space and how companies looking to relocate or expand can find success in smaller industrial sites, which for the most part did not see the same boom in new development.

"At the height of the industrial market boom, most developers and investors were in search of credit tenants to fill 100,000-plus square feet spaces," Tim wrote. "The underlying financial prowess of these large tenants makes them less risky tenants because they are much more likely to be able to continue paying rent in the event of a lease or market disruption."

"But leasing to multiple smaller tenants can also reduce the risk of new development by allowing developers to diversify their portfolios. Using this model, developers can diversify not only through different companies, but also different industry sectors and lease expiration dates," he wrote.

Click here to read the full article: Why Smaller May Be Better for Some Businesses

Area Development is a magazine that covers corporate site selection and relocation. It serves an audience of approximately 44,000 business leaders and site selection professionals.