Multi-Tenant Industrial
An industrial property subdivided into multiple units leased to different tenants, typically ranging from 1,000 to 10,000 square feet each.
Definition
Multi-tenant industrial refers to warehouse or flex buildings designed to accommodate multiple occupants, each with their own unit, entrance, and often their own roll-up door. This format is the foundation of small bay industrial real estate. Buildings typically range from 20,000 to 150,000 total square feet, subdivided into units sized for small businesses. Multi-tenant properties offer landlords diversified income streams and reduced vacancy risk—losing one tenant doesn't mean losing all income. For tenants, they provide right-sized space without committing to an entire building. The multi-tenant format creates communities of similar businesses, often trade contractors and service companies who value proximity to each other and shared infrastructure.
Example
A 60,000 SF multi-tenant industrial building contains 24 units ranging from 1,500 to 4,000 SF. Tenants include HVAC contractors, electrical suppliers, a plumbing company, an e-commerce fulfillment operation, and a catering kitchen. The landlord maintains 95% occupancy with staggered lease expirations.