7R Glossary
Small Business Unit (SBU)
What should you know?
Traditional logistics parks offer large spaces designed for bulk storage, which often makes it impossible to lease smaller units. The SBU format addresses the need for flexibility—it allows for the seamless integration of warehouse, retail, and office functions under one roof, in close proximity to the end customer.
Due to their urban locations, SBU parks are well-connected to public transportation, which facilitates the recruitment of office and warehouse staff. They also enable fast same-day urban deliveries, serving as a key component in the supply chains of modern e-commerce and service companies.
The Small Business Unit in 7R Practice
In 7R, the equivalent of the SBU concept is a network of urban warehouses 7R City Flex. We design them in strategic locations within metropolitan areas, with companies in mind that are looking for a prestigious headquarters combined with a fast-paced distribution center. The modular design of 7R City Flex facilities allows tenants to easily expand or reduce their occupied space as their business grows, while maintaining BREEAMBREEAM (Building Research Establishment Environmental Assessment Method)BREEAM (Building Research Establishment Environmental Assessment Method) is one of the world’s most important and widely recognized methods for the multi-criteria assessment of buildings in terms of sustainability, environmental performance, and user comfort. BREEAM certification confirms that a warehouse facility has been designed and constructed in accordance with rigorous environmental standards.Read the full definition →.
SBU vs. Big Box
| Criterion | Small Business Unit (SBU) | Big Box (Large-Scale Warehouse) |
|---|---|---|
| Module area | Small (approx. 300–1,500 m²) | Very large (from 2,000 m² to 100,000+ m²) |
| Location | Within city limits, near urban hubs | On the outskirts of cities, along highways and expressways |
| Intended Use | Showroom, e-commerce, last mile, SMEs | Bulk storage, large distribution centers |
| Office Participation | High (often up to 20–30% of the area) | Low (usually up to 5–10% of the area) |
Frequently Asked Questions
The SBU format is ideal for the e-commerce industry (fast order fulfillment), electronics and IT equipment distributors, the pharmaceutical and fashion industries, as well as service centers, laboratories, light manufacturing facilities, and high-end showrooms with warehouse space.
Yes, flexibility is one of the main advantages of the SBU. The building’s design allows for a significant increase in the proportion of office and common-area space relative to the warehouse space, and for this space to be fitted out to a high standard (Class A) for sales, IT, and management teams.