Here's my summary: clear ceiling heights, type of construction, column spacing, sprinkler systems, make up air systems, super flat floor, good lighting, office space, and specialized requirements. Those are technical side of the industry real estate I bet. Hope for a set of content comprehensively covering: 1. Technical 2. Financial 3. Legal/Title (those three constitute the rates I suppose) 4. Brokerage profession (e.g. CRM skills, listing and lead generation practices, how the business works, etc.) 5. Market updates/landscape (5 Quesions series is great) Thank you and have a great day!
That is a great summary Thuy! My goal is to fill out the rest of that content you mentioned as well. Please keep sending me ideas as it is very helpful. And thanks again for watching!
I really like your mouth typo corrections :D I am starting on this industrial real estate journey, the eviction moratorium and all is really making me re-think my approach
I didn’t realize I made those errors until I researched it! Industrial has largely been immune to the evictions as many companies actually thrived over the past 12+ months. There are already exceptions but I only had a single tenant in my portfolio request any rent deferral and they caught back up in full the following month. I think it’s a great asset class to consider!
Another quality video. You are so right about the nuances of what you need to have in an industrial property. Just saw an older warehouse that had 20 ft high ceilings and loading docks that only fit small trucks. Talk about functional obsolescence! LIKE #4.
I was involved with an industrial property a few years ago that only had 14' ceilings. It took a long time to sell and sold for ~ 25% less than if it had normal industrial ceiling heights. Those details can make a huge impact!
Warehouses larger than 50k square feet also may drive smoke purge system requirements. This can be done mechanically or through natural ventilation openings in the roof.
Another great video Chad, last mile delivery may soon change to drones and boxes with parachutes (haha), but warehouses will be the main point of take-off! On that note I'll start manufacturing long retractable poles so I can retrieve all my deliveries off my roof!
Or a telescopic pole to retrieve packages that end up in a tree or your neighbours roof haha! That does bring up a great point though, I don't doubt we'll see all sorts of autonomous deliveries in the near future .... drones, cars, semi-trucks, robots (!)
@@industrialize well explained and lot of information about warehouse basics and terms shared.. Thank you for this useful video and it gives confidence to people like me who deal in industrial real estate...
Hello Dear,this is Ken from Gurki Pack,we are 25-year-old factory on packing machine,top supplier in this field.Many e-commerce and warehouse customers use our machine to cut their packing cost. Welcome to ask when in need.
That's a fair observation. Definitely requires intimate knowledge of exactly what the client needs and being able to match them with a compatible property.
Here are a couple quick thoughts: 1. When you build balance your needs with the next user in mind (at some point you may want to sell so try to identify what will be appealing to future owners); 2. Stay on top of routine maintenance (ie/ HVAC, roof) and meticulously document everything you do. This will save money in the long run and show future buyers you were a diligent owner.
That's a really interesting idea. I have a long term perspective on everything I own, so I'll reach out to a few people who have successfully flipped warehouses and invite one of them on to do an interview about how they approach the process. I'll make sure I line up the right person so there's value there and not a lot of fluff either.
@@industrialize Wow. I literally found your channel like an hour ago and everything about it (including your super quick response) has me floored. I'm currently interested in finding value-add industrial opportunities in Southern California. Doing my best to learn as much as possible, but trying to particularly sharpen my skills when it comes to assessing repairs and generating proper analysis (including cash flow modeling and calculating cap rate/sale projections). Watching more of your videos as we speak - great work!
@@eldowns I'm going to find a guest who can help shine some light on it! I can speak to the value add component as well as I'd like to think every property I've bought had an immediate lift on purchase. I'll post back when I've got someone lined up!
Great info! I’ve been a residential real estate investor but Commercail industrial real estate specifically warehouse space is my passion. Do you offer a course or mastermind? Thank you! -Jon
Thanks Jon! I'm working on putting a course and mastermind group together, but in the meantime I'm putting out a weekly newsletter with noteworthy news about the industrial market. It's free to subscribe: https//www.industrialinsiders.com. I should have more info on the course and mastermind group shortly as well.
Much appreciated! The first thing I'd do is have a good team around you (a local lawyer, broker & banker). They'll help walk you through the process and connect you with any other professionals that need to be brought in, such as an appraiser, environmental tech, etc. Then commit to studying everything you can about the market you're looking at. This will include market stats like vacancy and absorption, but dive deeper to find out what properties are selling for, what deals are getting done in the lease market and see if there is one sub-type of industrial performing better than others. And make sure you know any potential weaknesses of the property as well. It all starts with having a good team so make sure you're prudent in who you select. Good luck!
Good video! I've always found industrial real estate appealing particularly warehouses but I do want to know where would you rank them compared to other types of real estate like office buildings, medical centers, malls, retail stores, etc in terms of profitability and increased value over time?
Great question David! I'll aim to do a video answering this in more detail but at a high level I think industrial will see a couple years of aggressive growth as supply tries to catch up to demand, followed by more stability (and perhaps downward pressure if too much inventory is added). By comparison, I think there is pain in the forecast for office and retail will be flat, at best. Medical office is another great option as there will be growing demand as the population ages. Maybe the saying should be Beds, Sheds & Meds as the best asset classes to invest in!
