There are many types of investors.
Many property owners are business owners who have acquired property for their business, recently sold their business and now have an investment vehicle. Others are professional investors who acquire property through LLC’s by themselves, with their families or with like-minded investors. Lastly, there is the institutional crowd. Institutional investors are pension funds, insurance companies and private equity funds. These three investor profiles all have unique needs and motivations.
Business owners prioritize business operations when evaluating a property. They may use the property as a retirement vehicle, to finance their business acquisition needs or enhance the image of their business for an eventual sale of the business.
Professional investors have an acute sense of value, acquire opportunistically and scrutinize cash flow. They keep a close eye on tenant improvement allowances and trade free rent in lieu of tenant improvement in many cases. One must be mindful when matching their lease terms with their financing maturities.
Institutional Investors are conservative and cautious. They ensure that they maintain their properties in first class condition and are often the first parties to be able to raise their rents and the last to lower them. They prefer Class A and B assets although many have set up additional funds for riskier value-add investments.
E-Comerce is growing at 15%, industrial rent growth is hovering around 6% annually, and vacancies are lower than any point in the last cycle. Big buildings and smaller units keep pushing rents. Now is the time to harvest investment returns and reinvest profits into larger assets.
While Industrial assets are not cheap, there are deals to be had.
We track all major markets and can find property for your portfolio. If you are an investor, we want to hear from you. What do you want to buy? What do you have to sell? Not in the real estate market and want to be? I’d love to chat and have access to opportunities to buy, co-invest, and borrow.
Do you have a specific property in mind that you would like to evaluate? Request of opinion of value to find out how we can work together.
Do you have a specific property in mind that you would like to discuss. Contact us today.