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Demand Is Strong for Multitenant Distribution Warehousing

Demand Is Strong for Multitenant Distribution Warehousing

The trend of multitenant distribution warehouse properties  outperformed the broader commercial property market,  will continue according to a special report,” Multitenant Distribution Warehouse Segment in the U.S. Outlook 2016,” recently released by Cushman & Wakefield.

“Healthy demand and tight supply has made multitenant distribution warehouse among the best performing of all commercial real estate segments,” says Jason Tolliver, Cushman & Wakefield’s head of Industrial Research, Americas. “The historic and forecasted demographic and economic demand drivers indicate continued out-performance over both the short and long term.”

Multitenant distribution warehouse properties are assets with smaller footprints – typically 200,000 square feet or less – often with column spacing of 40 feet by 40 feet and clear height of 24 feet or lower. Tenants in these facilities tend to be local and regional distributors seeking to operate in key industrial submarkets.

Multitenant distribution warehouse is the dominant industrial property type in the U.S., constituting 40% of the total 13.5 billion-square-foot industrial inventory. Of the 8.7 billion- square-foot investment-grade universe of industrial properties, multitenant distribution warehouse accounts for 61.5%.

In addition to making up the largest share of U.S. industrial inventory, it comprises an even greater share of U.S. industrial investment-grade inventory.

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