Industrial Properties Overview
Average Deal Size: $1-10 million.
Single-story industrial buildings over 10,000 sqft, with 50%+ occupancy and modern infrastructure. Located near major highways for efficient logistics, these properties offer value-add potential through leasing, operational improvements, and tenant enhancements.
- Deal Size: $1-10 million
- Square Footage: 10,000+ sqft
- Construction Year: 1980s or newer
- Occupancy: 50%+ for immediate cash flow and growth potential
- Building Type: Single-story buildings for ease of access for industrial operations
- Ceiling Height: Minimum of 20’ for storage or manufacturing
- Proximity to Interstates: Close to major highways for efficient logistics and transportation
Investment Criteria
- Value Add Opportunities: Enhance or reposition the property through tenant improvements or operational efficiencies.
- Off-Market, Debt-Free: Favor off-market properties with no debt and long-term ownership for better terms.
NOI Growth Potential: Look for chances to improve occupancy or reduce expenses for higher Net Operating Income.
Location Features
- Proximity to Interstates: Easy access to major highways is essential for transportation and logistics.
- Household Income: $60,000+ median income within a 3-mile radius.
- Population Growth: Focus on areas with increasing population to indicate rising industrial demand.
- Density: Medium to high population density for labor availability.
Investment Strategy
- Increase Income: Lease vacant space or raise rents to increase revenue.
- Reduce Expenses: Implement efficiencies like energy savings or renegotiate contracts.
- Fill Vacancy: Lease out unoccupied areas quickly.
- Adaptive Re-use: Modify the property for different industrial uses if needed (e.g., convert warehousing to manufacturing).