Essential Service Industrial:
A Resilient Niche within Small-Bay Industrial
A differentiated, resilient real estate strategy built for today’s uncertainty
CenterSquare pursues essential service industrial opportunities through a repeatable process anchored in research, relationships, and essential demand.
CenterSquare's Service Industrial Track Record
12
Closed transactions
2.44MM
Square feet of service industrial owned
$142MM
Equity committed to date
466
Tenants across 101 buildings
30%
Realized IRR to date
65%
Lease tradeouts since 2023
100%
# of NNN leases executed
83%
Investments sourced off-market
Source: CenterSquare based on historical and current service industrial assets held in client accounts as of December 10, 2025.
Against a background of shifting fundamentals in the industrial sector, small bay has emerged as a leading subsector, but CenterSquare has identified an even more attractive niche: Essential Service Industrial.
These small-bay, multi-tenant properties, typically under 10,000 square feet, house essential businesses such as electricians, HVAC technicians, and contractors. Located in high-demand infill areas, they benefit from persistent undersupply and the lowest vacancy rates in the industrial market. With rents often 30–60% below market and short lease terms that allow for mark-to-market upside, Essential Service Industrial provides resilience, repeatability, and essential demand, making it a compelling strategy in today’s uncertain environment.
Discover why Essential Service Industrial stands out as a leading opportunity in today’s industrial market. See how this strategy delivers resilience, repeatability, and essential demand-driven performance.
CenterSquare, founded in 1987, is a global real estate investment management firm that invests across private (equity and debt) and listed real estate.
Integrated public/private research platform delivers unique insight and investment edge across our diverse set of strategies
Comprehensive research process leveraging proprietary tools to generate in-house research
Thought leadership and research driving growth in alternative real estate investment strategies
Strong investment track record delivering risk-adjusted returns over multiple market cycles across listed and private strategies
Loyal and growing global client base of some of the most well-respected institutional investors and consultants in the world
