Small Bay, Big Potential: Unlocking Canada’s Industrial Underdog

The Canadian industrial market is vast, but not all assets are created equal. While large-scale distribution centres and logistics hubs often steal the spotlight, it is the Small Bay segment, generally characterized by industrial properties 50,000 square feet (“sf”) or less, that quietly powers the backbone of Canada’s economy. This segment is driven by rapid population growth and the essential businesses that sustain local communities. Representing approximately 30% of total industrial inventory, these spaces serve industries that remain resilient throughout economic cycles.

Small Bay industrial has five key pillars that underpin its strong investment fundamentals: non-cyclical tenant nature, strong demand, hardened income streams, persistent supply shortages, and lack of institutional ownership. With population growth fueling leasing activity and a projected 3 million sf supply deficit over the next five years, the sector is primed for rising rents and valuations.

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