Don't Invest in Industrial Real Estate
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- Опубліковано 13 чер 2024
- I'm a huge proponent of investing in industrial real estate but it's definitely not for everyone. I'd go so far as to say it's not for most people actually.
This video is a presentation I gave this weekend and I had a section about why investors should avoid it altogether.
My channel is devoted exclusively towards industrial real estate so this came as a surprise to people in the session, but I believe it's an asset class with a lot of opportunity but a corresponding amount of risk.
Here are the timestamps if you want to jump around:
0:00 - Introduction
1:57 - What is industrial real estate?
8:06 - Why consider investing in industrial
15:01 - Why you should avoid industrial real estate
20:26 - Tips and resources
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🙋♂️ Chad Griffiths, MBA, SIOR
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To invest or not to invest, that is the question.
invest!
I'm with you!@@RonaldRohdeLaw
Really appreciate this overview!
Thanks for the comment, glad it was helpful!
Robust presentation Chad, I think Dallas won't get overbuilt too much, we still have had millions of feet of absorption and new spec builds have stopped. Agreed on the blue state avoidance!
Thanks Ron! I am ultra bullish on on Texas, especially Dallas and Houston!
Thank you
Love the video Chad.
Thank you Don!
The mark of an expert is having a nuanced and balanced take. Great video as always Chad!
I liken it to a debate, to truly understand a topic requires a thorough understanding and appreciation of every side!
Well said!
Thanks Erik!
Could you make a video on how a harbor could have an effect on industrial real estate? For example charleston or savannah harbor’s effect on industrial warehouses/factories
Great idea for a video, I'll add it to the queue!
I saw your video on IOS and I am looking into it but kind of stuck on the numbers and what to bring to the table and how to set my terms ?
Do you provide mentorship?
Hi chad thanks so much for your video do you believe sale lease backs are great opportunities?
Hi Zakeaa yes they can be excellent opportunities but you still need to treat it as any other investment and underwrite it accordingly. It’s great that the seller knows the building well and presumably it works well for them but you still want to ensure they have the capacity to pay rent in addition to ensuring the building will be re-leasable down the road
@@industrializethank you for that insight 🙏🏾
💪 industrial is the way! Are you going to Hamza Ali's event in Austin in Nov?
Completely agree! Unfortunately I'm tapped out for conferences this year after going to SIOR then NAIOP! NAI Global in February?
Do you recommend building a site or buying a site first? Assuming 300-400K to invest and full-time attention.
I've only purchased existing buildings myself although I've had my eye on doing a development for awhile now.
To me it comes down to risk / reward and I haven't had the risk appetite to do a development yet. There are just many more steps involved in the planning combined with the snarls that come with the actual construction that I've just been more attracted to existing buildings.
I have some developers coming on the podcast in the near future so I'll explore this question with them further.
As someone like myself learning industrial real estate I will start off as a passive investor or buy REIT's. I wouldn't jump into operator side right away.
I started my investment journey the same way
is it common for leases to get reviewed by a lawyer even on smaller assets?
It's hit or miss on small assets as many owners elect to do it themselves or have their property managers do it to save costs.
Personally I'd want to have every lease reviewed by an attorney just to make sure I didn't miss anything important.
Hi, I'm from Ukraine. We are starting a commercial real estate company. Yes, we are at war right now. But the market is still on the move. And we believe that our country has a great industrial future
I've heard Ukraine has a huge amount of heavy manufacturing, wishing for peace so everyone there can get back to normal.
Unfortunately, we don't have open sources of real sales prices like you do, so our pricing is a very complicated process
@@industrialize
What do you do , guess?
Unless it's in China.