Small- And Mid-Bay Industrial Users Weathering Tariffs Well — For Now

Tariffs haven’t broken small- and mid-bay industrial users yet — but with shorter leases, stockpiling and rising vacancies, the question is how long they can last.

As time wears on, landlords and tenants say the balancing act is getting harder.

Falling confidence in the U.S. economy has dampened long-term planning, shortening the length of leases.

“Our average lease terms are usually three to five years,” said BKM Capital Partners Managing Director of Asset and Portfolio Management Mason Waite.

“What we`ve seen is a lot more tenants, when we come up for renewals, saying, ‘Instead of a three- or four- or five-year proposal, can you give me a two- or three?’”...   ...more

RSK: Looks like shorter term leases and/or smaller rent increase if any. Probably temporary until the real effect of the tariffs is known.