A few interesting facts about the state of industrial leasing in America:
Prologis, a real estate investment trust based in San Francisco, reported that its portfolio was 98% leased in the third quarter and projected that rents in the United States would increase 19% for the year, after jumping 7% in the third quarter alone.
First Industrial Realty Trust Inc., a Chicago-based REIT, said nearly one-third of its tenants with leases up for renewal in 2022 have already extended their contracts at rental rates averaging 23% higher than current rates.
A third-quarter industrial market report from Cushman & Wakefield found 340 million square feet had been leased and taken out of available inventory so far this year, and a CoStar analysis found that supply disruptions are now driving record demand.
The tight supply of space weeks before the busiest time of year for retailers is resulting in projected industrial rent increases of as much as 25% this year.
I read a fantastic thread by @brentBeshore that really stuck with me and got me thinking about my own list of answers to the question:
“What are the ten most powerful ideas that changed your life”
Here is what I came up with 👇
1⃣Radical Transparency / Honesty
The world already has enough puffery and fluff.
I decided many years ago that I would instead lead with the truth even if it was ugly, and let the pieces fall where they may. I can say with certainty this changed everything for me.
2⃣Look at the Big Picture
I worked with a partner who was easily 10X smarter than me. He would find genius-level solutions to complex problems yet miss that the project should be dumped because the market shifted. Sapiens by @harari_yuval brings focus to our place in history.
Gotta be honest. Sharing my track record today was/is terrifying. Including the 2008 losses in a document now seen by over 40,000 people ranks up there on the emotional intensity scale for me. It’s hard not to feel like deals that went south define you.
Biggest lesson for me is be wary of deals that don’t generate cashflow. I had $40M in land dev properties at the same time, in 2008… In Northern California…
It doesn’t matter that I’ve done 160M in equity raises since that time and that those investments have done well.
That project that isn’t in your wheelhouse but you are considering taking on because it’s a “once in a lifetime opportunity”, you should probably pass on it. 👇
I spent more of my life than I care to admit thinking that I could make any type of deal work if I just pushed hard enough. I got lucky a bunch of times but didn’t know it was luck. I thought it was me. 🤦♂️
Turns out the best way to consistently build wealth isn’t by getting lucky, it’s by getting really freaking, better-than-the-rest, good at one type of market.
14 Undisputable rules for building a strong fundraising pipeline
After 20 years and more than $200M raised for real estate investments around the 🌎 I created a simple set of rules that we use to raise money. These aren't hacks or cheat codes, just the right way to do things.
Before we start, I need to address the 🐘: Not all GPs have the same starting line for raising 💸. Some have connections that help them go big out of the gate. Over time, however, track records win out, and a GP will have access to the capital flow they deserve.
1 Operate with integrity - A GP has many opportunities to hide little facts or make things sound better than they really are. Don’t go down that dark road, even if it makes life easier in the short term. ALWAYS operate with integrity down to the penny in everything you do.
Interesting new industrial tenant we started working with to lease space from us. Business model is a new twist on the 3PL model, this time for corporate clients. 👇
They are basically the WeWork of industrial space. They lease (or buy) 20-200k square foot warehouses all over the city and set them up with racks and digital inventory management systems. They operate a full fleet of trucks and do all of their own stock movement.
Their customers are mostly manufacturers or large distributors who need to store a massive amount of product and to be able to pull it into their sites within a few hours notice.