What metrics to use to discover/understand industrial markets/opportunities?
If you are trying to better understand better SFR or MFR markets that will be growth opportunities, you would target markets based on metrics such as
- Estimated population growth, minimum existing population
- Household income in order to analyze rent to income ratios or rent vs mortgage analysis
- Annual SFR/MFR supply underway or proposed
- Corporate moves, tax incentives being offered by governments to private companies
That information may point to you certain counties or even certain ZIP codes that the story checks out and then you'll dive deeper into research of those particular submarkets.
I'm not super familiar with industrial real estate strategies... have worked on a few deals high level. But i'm trying to understand how I can try to "stake where the puck is going" where multifamily, SFR rental and STR is fully saturated, maybe there is opportunity acquiring smaller industrial deals?
So what sort of metrics would you filter and research to better understand industrial markets to target? Would you emphasize demographic info like housing heavily? Or is it much better to research trade data and dynamics.
Are there markets that are "growth markets" similar to Austin, DFW, PHX, Vegas, Boise,etc were all growth markets if you paid attention 3-5 yr ago to demographics you would have been skating to the puck before they all "boomed"?