Did you know that it's hard to find a small warehouse for lease these days?

As shown in the graphic below, from the Wall Street Journal based on data from real estate firm Cushman & Wakefield, in Q4 vacancy rates for facilities less than 50,000 feet were just about 2.5%, versus over 10% at the other end of the spectrum for warehouses over 500,000 square feet.

The overall vacancy rate for warehouses of all sizes was 6.7% at the end of the year.

The prime cause of this situation: developers just aren't building smaller facilities.

Source: WSJ

“There’s not been virtually any new development in those smaller size segments,” a Cushman & Wakefield executive said. “Just economies of scale and deal economics, developers are targeting those bigger boxes to maximize their return profiles.”

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