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Industrial real estate is indeed a hot asset class, with significant activity and opportunities. Based on the most helpful WSO content:

Opportunities in Industrial Real Estate:

  1. E-commerce and Logistics Demand: The demand for warehouse space is largely driven by e-commerce players and logistics/3PL companies. However, it's crucial to note that e-commerce is currently a loss leader in many cases, and there may be a recalibration in this segment.
  2. Market-Specific Trends: Industrial real estate is becoming a micro-market game. Understanding tenant needs and market-specific dynamics is essential. Some submarkets, like Central PA/Berks County, South Dallas, Atlanta, and Chicago, show signs of concern in the big-box segment.
  3. Asset Types: Key industrial property types include bulk distribution, regional distribution, shallow-bay/multi-tenant, flex, and manufacturing. Flex and manufacturing properties tend to trade at higher cap rates due to retenanting risks.
  4. Tax Abatements: These can significantly impact rental rates and competitiveness in industrial markets.

Active Shops in Industrial Real Estate:

While specific names of active shops aren't directly listed in the context, Chicago is highlighted as a region with notable industrial activity. Firms like Lincoln, William Blair (WB), Baird, Houlihan Lokey (HL), and Greenhill & Co. (GHL) are mentioned in the context of industrial deal flow and experience.

If you're looking to explore opportunities, focus on understanding market-specific trends, tenant needs, and the evolving dynamics of the industrial sector.

Sources: Industrial Properties - What are the key things to know?, Real Estate Trends (All Asset Types), Let's Talk Recession Risks in Real Estate, Future of Industrial Real Estate? Who are the next big tenants?

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 
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Most large institutional firms (pe firms, lifecos, etc.) have some sort of allocation to it. Not a pure industrial guy but have done a decent amount of work in the space. In terms of top industrial focused shops I’ve seen - you got Link Logistics (Blackstone portco), Cabot Properties, Centerpoint Properties, Jadian, GLP, Realterm, Bridge, Faropoint, EQT, Longpoint, plus some of the big reits - Prologis, STAG, First Industrial, etc. Probably missing a bunch, but I’d say those are some of the big dawgs writing the biggest checks (not to say big checks = success all the time).

 

Mind if I ask what shop? Seeing a lot of activity it seems in IOS as its the "new" hot asset on the block.

Curious as I'm working for a small deal-by-deal industrial sponsor right now and its tough going in acquisitions right now. Cant make deals work without aggressive rent growth assumptions for the most part, and therefore makes raising capital very difficult.  

 

What’s the rent growth variable look like in your proforma? Aren’t you just starting at this year’s or next year’s market rent and running 3% annual increase on a 5-10 year term? At least MF has annual resets where you can get “optimistic”

 

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