I know nothing about industrial real estate. Which is funny because I have done some really "off the run stuff" with respect to asset types.
Everyone always tells me industrial is simple, but when it comes time to talk about docking, parking, turning radiuses, power/wattage, clear heights, functionality etc. I know nothing.
Where can I get smart on these? What do you guys look at when evaluating industrial deals and the physical real estate?
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I posted this topic below about a year ago. It has some really great info in it:
https://www.wallstreetoasis.com/forums/everything-you-could-ever-want-t…
Industrial is deceptively complicated. Most people who are uneducated on industrial see four walls and a roof. What most don't realize is how important every system and specification is to the functionality of the building, and how they all tie in together. Feel free to ask me any questions. I work on industrial acquisitions all day every day.
Industrial isn't simple, it's CHEAPER to own as TIs are less and leases mostly structured Net. Stable, Core industrial is relatively easy to UW from an investment perspective. And again, Net being preferred among tenants in the space makes most UW easier than working in base years or turning MF units every year.
The space is the most tech forward / evolving sector in CRE from a tenant/development perspective. No beef with the above link, it's great for a baseline understanding - and certainly what most tenants prefer.
It does not, however, tell anything about how tenants have evolved in the last-touch space. You can throw away every guideline in this space, as tenants make it work for location. You should see how shitty some of the buildings were moving with Amazon in them in the urban space.
Prologis has the best research, period. It's also all free/you don't have to log in to get it. They came out with a building classification research brief that gives so much insight into how they look at the space, and it's invaluable. Just read everyone's research, you'll see what they focus on and how they talk about it, and can apply that to what you're seeing.