The Challenge
The client was seeking durable industrial income in a market with real demand drivers, without paying the compressed cap rates that California industrial had reached.
Our Approach
- Targeted Southeast submarkets with logistics and manufacturing employment growth and constrained new supply
- Focused on multi-tenant flex product, where tenant diversification cushions the loss of any single lease
- Verified in-place rents against market comps to confirm mark-to-market upside rather than assuming it
- Reviewed each lease for structure, escalations, and expense recovery before removing contingencies
Outcome
The client closed on a diversified business park with in-place income, embedded rent growth as below-market leases roll, and a materially better yield than comparable California industrial at the time.
Case study details are generalized and figures omitted to protect client confidentiality. Past results do not guarantee future outcomes. Nothing here is tax or legal advice — consult your own CPA and attorney before structuring a transaction.