Sector Deep Dive – Shallow Bay Industrial
What is Shallow Bay Industrial?
Last-mile logistics space with strong demand and high barriers to entry
Sector Deep Dive
90%
of industrial leasing activity occurs in Shallow Bay assets1
4.8%
vacancy in Shallow Bay assets, vs. 7.1% national industrial average2
Sustained and growing demand
E-commerce growth has contributed to strong demand for last-mile Shallow Bay properties1, 2, 3
High barriers to entry may limit new supply
High construction costs and limited infill land availability discourage developers from building.
Decreased investor competition
Institutional investors own only 3.3% of Shallow Bay properties, creating a potential opportunity for specialized investors.4
Inside the Deal
$55M
Across 33 properties
4%
NOI Growth5
96%
Leased
33 Property Multi-City Recap
Diversified portfolio in 3 high-demand industrial markets: 33 properties acquired across Dallas, Phoenix, Kansas City6
18% Mark-to-Market rent upside: current rent-roll is priced below market, representing potential upside as leases roll over
Short lease duration provides opportunity for NOI Growth: weighted average leases of 2.4 years may provide opportunity for strong cash flow growth given mark-to-market rent upside
Acquisition date June 18, 2026.
1 Source: Newmark Research, January 2025.
2 Source: Cushman & Wakefield, U.S. Industrial MarketBeat, Q4 2025.
3 Represents leasing activity observed across select markets.
4 Source: Costar, December 2025.
5 Based on estimated in-place rent mark-to-market growth amortized over five years.
6 Source: CBRE, U.S. Real Estate Market Outlook 2025 – Industrial & Logistics, January 2025.
NOI (Net Operating Income): A property’s gross revenue less operating expenses, excluding debt service. NOI growth refers to the increase in this metric over time.