Business Model
Industrial
Industrial properties include any structure designed to act for manufacturing or warehousing of goods or services. With the American economy one of the largest and strongest in the world, the industrial real estate niche is extremely large, with over 14 billion square feet of space distributed over 250,000 facilities. You will find industrial property opportunities throughout America, in all 50 states and in both large and small cities.
Industrial real estate is an extremely simple business model, as many industrial properties are rented on a “triple net” basis in which the tenant pays all costs of the building including utilities, maintenance and even property taxes. In other cases, the tenant pays a monthly rental and the landlord takes care of facility maintenance and costs.
Rent Land
Marketing
Re-Investment
Business Model
Industrial
Industrial properties include any structure designed to act for manufacturing or warehousing of goods or services. With the American economy one of the largest and strongest in the world, the industrial real estate niche is extremely large, with over 14 billion square feet of space distributed over 250,000 facilities. You will find industrial property opportunities throughout America, in all 50 states and in both large and small cities.
Industrial real estate is an extremely simple business model, as many industrial properties are rented on a “triple net” basis in which the tenant pays all costs of the building including utilities, maintenance and even property taxes. In other cases, the tenant pays a monthly rental and the landlord takes care of facility maintenance and costs.
Rent Land
Marketing
Re-Investment
Pros
Blue-chip tenants are very dependable and good credit risks
High retention in certain cases
Attractive financing available
Simple business model
Cons
Overbuilding in some markets
Obsolescence of older buildings that don’t meet current floorplans and ceiling heights
Changing mechanics of inventory maintenance
Lower cap rates
Market Research
Articles & Reports
HOW TO PROPERLY INSURE YOUR INDUSTRIAL OR WAREHOUSE PROPERTY
The world is full of risks, and proper insurance allows you to mitigate these risks. If you ask any industrial property owner, they will rank insurance as their number one source of peace of mind, as it protects them 24/7 from a myriad of potential disasters. So how...
THE OUTLOOK FOR INDUSTRIAL WAREHOUSE INVESTING
A recent report on the industrial sector highlighted some of the facts and trends recording this industry. Here are some of the latest statistics for this niche. Only 5.1% of the nation’s industrial space is vacant. This is the lowest rate in history despite...
MOST IN-DEMAND FEATURES FOR WAREHOUSE INVESTING
One of the worst dangers in real estate is to own property that becomes obsolete with modern design and tastes of tenants. And warehouse investing is no different. There are certain features that today’s warehouse tenants are looking for, and these are the ones that...
updates
Forums & Deals
Learning about and committing to investing in industrial is only half the battle. The real challenge is finding the right deal to invest in. These resources will help you find the right deal to give a diligence focus and potentially buy. Remember that finding the right industrial is all about volume, so the more potential deals you look at the better your odds of finding the right one. Don’t just look at a few options, look at as many as you can find. Success in industrial investment revolves around making as many offers as possible.
Providers
Brokers & Lenders
No buyer can succeed without assistance from those who can source deals, as well as finance them.
Brokers are an important part of finding properties to buy. This is their specialty, and they typically have listings that are both “public” as well as “private” (those that they are not allowed to reveal to the public due to restrictions from the seller). Successful buyers contact all of the brokers in their niche to see what listings they may have, as well as to get set up in their email database for announcements of new listings. For a complete list of these brokers click the learn more button below.
Lenders are the key to successful real estate investing, as it is through the sensible use of leverage that rates of return are maximized. Banks generally all follow the same basic lending principles, but there are certain facts regarding each niche that have to be explored. In many cases – on deals of $1 million or more – you should explore using a loan broker (also known as “capital consultant”) to obtain a loan for you for a fee. This is extremely important on CMBS “conduit” debt and Fannie Mae/Freddie Mac “agency” debt. On deals under $1 million, you should focus on seller financing as well as local banks that know the market and are aggressive in lending to their base. For a complete list of lenders in this niche click the learn more button below.
Education
Books & Courses
Before you risk any capital, your first step is to learn everything you can about how to profitably invest in this niche. To accomplish that, there are both free resources as well as books and courses to aid in your quest for mastery of this real estate sector. We recommend that you take advantage of every opportunity to learn as much as possible before you invest your time and money. The most important trait of a successful investor is being able to quickly separate deals into a “might be an opportunity” stack versus a “not an opportunity”, as well as know the steps to conducting superior due diligence. In niche investing, knowledge is power – so get as much of it as you can.
OUR MISSION
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