Industrial Building Portfolios – In Heavy Demand

Industrial Building Portfolios – In Heavy Demand

Posted on by Jim Klein

Industrial Building Portfolios, $50MM and greater, are where the action is today. Institutional investors need scale and the only place to find it, as far as industrial, is in the portfolios of National Operating Companies and Private Partnerships. Institutional Investors stand between the real estate and fixed obligations to satisfy pension, insurance, and retirement plans. It’s major financial plumbing and as the obligations grow so does the need for product. Roll ups, a familiar consolidation vehicle in corporate America, is now the preferred way for large real estate investors to buy. Unknown to many, national industrial building ownership is consolidating and almost all local developers/investors sell into these relatively few pools as a final exit.
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Race for Space – The New Dynamism

Race for Space – The New Dynamism

Posted on by Jim Klein

Dynamic pricing is becoming a greater influence on space leasing and building sales. By dynamism, I mean fluctuating rents separate from conventional underwriting. A “spot market” is emerging to satisfy demand for smaller, flexible, and elastic spaces. Many examples include Truck Yards, Warehouse Sharing, Creative, Cannabis, and other categories of sub-space where “street rents” are disconnected from contract rents. WeWork and Amazon are two primary examples that contract with the Landlord at one rent, and lease out space bits at higher rents. Public Warehouses, Self-Storage, Swap Meets, Studios and Truck Yards operate along the same model by collecting additional rent by offering “alternative occupancies” with varying degrees of added services. The revolution is any building can be pieced out especially with easily acquired technology that can create “smart” buildings for automation, surveillance, and access.
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2018: Dynamo Year Ahead for Industrial

2018: Dynamo Year Ahead for Industrial

Posted on by Jim Klein

There is everything going for it this year. Big Capital is heavily on the warpath with more cash than ever looking at older, smaller and tertiary property with as much effort as they do with “A” product. Occupiers are armed with low tax rates and incentives for new plant, equipment, and improvements. Technologists are advancing innovation to increase cash flows with robotics, automation, ecommerce and sharing. At the top, the Developer-in Chief is intent on making commercial real estate and U.S. Industry the biggest winners in the economy.
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New Industries and the Spaces They Occupy

New Industries and the Spaces They Occupy

Posted on by Jim Klein

This October in New York City, SIOR, in partnership with the MIT Center of Real Estate, will be offering a program called New Industries and the Spaces They Occupy. In preparation, two members of the Tech Committee, Gary Schacker and Jim Klein; and Steve Weikal, Head of Industry Relations from the MIT Center had an advanced tour of the largest, Innovation-Anchored real estate developments in New York – Industry City and the Brooklyn Navy Yard. Very special thanks goes out to Michael and Bill O’Brien, Brooklyn natives and second generation SIORs, who organized and joined us on the tours.

bny
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Winter News 2016 – Industrial Real Estate Profits

Winter News 2016 – Industrial Real Estate Profits

Posted on by Jim Klein

development Deal Strategy

The current cycle is being propelled by three major conditions: Space Scarcity, Capital Markets Pressure and Rent Surge. Market dynamics are still very favorable for development and will only be disrupted if demand begins to weaken. Otherwise, strong fundamentals are the prevalent condition in most major U.S. markets.
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Big Industrial Land

Big Industrial Land

Posted on by Jim Klein

Introduction

This is clearly an exciting market, finally. Land and buildings are trading robustly in all corners of US Industrial.. There are three reasons to explain the activity – moderate growth; dearth of recent, new construction; and lots of institutional finance. There is virtually no product available, especially for newer generation buildings. As far as capital, it’s a wave of money that wants to be invested in industrial.
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The Challenge of Ecommerce Real Estate

The Challenge of Ecommerce Real Estate

Posted on by Jim Klein

cluster map postcard (3)

We’ve been examining some of the larger ecommerce distribution companies and while it is a very notable trend in the industry, we’re finding the current leasing impact is substantially less than the publicity it currently garners. But this is still early in the migration to a new distribution platform and a lack of building supply is holding back ecommerce adoption especially in infill markets. Ecommerce users generally want a lot of loading, high clearances, and large employee parking lots. These are not buildings typically found on the market and in this period of extreme shortage, there is no incentive for developers to develop anything “out of the box”. However, those few developers who have been willing to take the risk and build ecommerce buildings on spec have been richly rewarded.
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