Warehouse Property Basics: Industrial Real Estate 101
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- เผยแพร่เมื่อ 19 มิ.ย. 2024
- This is the third part in a series about investing in industrial real estate where I go into warehouse properties in greater depths.
Here are a few of the key terms & areas I'll cover:
0:00 - Review of industrial real estate
0:43 - Introduction to warehouses
1:47 - Clear ceiling heights
2:30 - Functional obsolescence
2:50 - Type of construction
3:15 - Column spacing
5:15 - Sprinkler systems
6:14 - Make up air
6:49 - Superflat floors
I noted a couple of mistakes in the video, including a few words I inadvertently invented:
"Combatible", and my personal favourite, "Matune".
Here are the two links I mention in the video:
Warehouse Management book: amzn.to/3hiTW2W
Warehouse Design Rules of Thumb: www.logisticsbureau.com/wareh...
Thanks for matuning in!
Chad
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🔔 Subscribe to my channel: / @industrialize
💻 Find me online:
LinkedIn: / chadgriffiths
Twitter: / chadgriffiths
Profile: www.edmontoncommercial.com/ch...
Chad Griffiths, MBA, SIOR
NAI Commercial Real Estate
Here's my summary: clear ceiling heights, type of construction, column spacing, sprinkler systems, make up air systems, super flat floor, good lighting, office space, and specialized requirements. Those are technical side of the industry real estate I bet.
Hope for a set of content comprehensively covering:
1. Technical
2. Financial
3. Legal/Title (those three constitute the rates I suppose)
4. Brokerage profession (e.g. CRM skills, listing and lead generation practices, how the business works, etc.)
5. Market updates/landscape (5 Quesions series is great)
Thank you and have a great day!
That is a great summary Thuy! My goal is to fill out the rest of that content you mentioned as well. Please keep sending me ideas as it is very helpful. And thanks again for watching!
Chad - the source of knowledge. I like how you process and deliver information. Keep it up!
I appreciate the feedback, Ognjen! Thanks for watching!
Mh
Ooh boy = I'm exited for this channel!
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I really like your mouth typo corrections :D I am starting on this industrial real estate journey, the eviction moratorium and all is really making me re-think my approach
I didn’t realize I made those errors until I researched it! Industrial has largely been immune to the evictions as many companies actually thrived over the past 12+ months. There are already exceptions but I only had a single tenant in my portfolio request any rent deferral and they caught back up in full the following month. I think it’s a great asset class to consider!
This was exactly what I was looking for. Thank you!
I’m glad it was helpful, thanks for the comments!
Great vid. Thank you Chad.
Thank you Mitchell!
Amazing! Love your style!
Thanks for watching and the feedback!
Very informative! Thank you Chad
Thanks you, much appreciated! I've thoroughly been enjoying your shorts lately, well done!
Another quality video. You are so right about the nuances of what you need to have in an industrial property. Just saw an older warehouse that had 20 ft high ceilings and loading docks that only fit small trucks. Talk about functional obsolescence! LIKE #4.
I was involved with an industrial property a few years ago that only had 14' ceilings. It took a long time to sell and sold for ~ 25% less than if it had normal industrial ceiling heights. Those details can make a huge impact!
That is a very well put together information
Much appreciated!
This is so informative Chad,
Appreciate that Christian!
I never knew industrial property with so detailed I just figured people were buying a huge box to store goods and people can lock up!
There's certainly an element of having the buildings just used for secure storage but there are also a lot of additional nuances that go into it!
Very professional! You won’t better content on this topic and top notch presentation.
Thank you Brendan, very much appreciated!
Great video, it's clear and to the point. I gladly subscribed to your channel.
Thank you! I appreciate the sub a ton too.
Awesome video, your channel is going to grow really fast with the quality of your videos!
🙌
Great value. So glad you doing this.
Thanks Alex!
Hey Chad! So glad that I found your profile here! Thanks for sharing your knowledge
Thank you Nadja, I appreciate the comments too!
Great video thanks! Very informative. Thank you
Thank you!
absolutely great video Chad.
Thank you Steven!
Great content. 🎉
Thank you Dana 🙌
Informative stuff, keep it up!
🙌🙌
Ótimo vídeo parabéns 👍👍👍👍👍👍
Great video
Thank you Rudy!
Chad, excellent video. Saludos desde San Luis Potosí, México.
Thank you! 🙏
Great vid thanks
Much appreciated 🙏
Another great video Chad, last mile delivery may soon change to drones and boxes with parachutes (haha), but warehouses will be the main point of take-off! On that note I'll start manufacturing long retractable poles so I can retrieve all my deliveries off my roof!
Or a telescopic pole to retrieve packages that end up in a tree or your neighbours roof haha! That does bring up a great point though, I don't doubt we'll see all sorts of autonomous deliveries in the near future .... drones, cars, semi-trucks, robots (!)
@@industrialize well explained and lot of information about warehouse basics and terms shared.. Thank you for this useful video and it gives confidence to people like me who deal in industrial real estate...
@@aravind2505 I appreciate the feedback Aravindan, thank you!
Perfect video
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Great video. Keep it up.. can you do a video on where is the best place to search and buy industrial building ?
Much appreciated and great suggestion for a video, I'll add a video on that in the near future!
Hey Chad, would you be able to do a video on analyzing warehouse rents connected to rail vs those which are not? Thank you kindly.
That's a great idea for a topic Alex! Leave it with me, I'll definitely make a video on that in the very near future.
Nice video 👍
Much appreciated!
Great info! I’ve been a residential real estate investor but Commercail industrial real estate specifically warehouse space is my passion.
Do you offer a course or mastermind?
Thank you! -Jon
Thanks Jon! I'm working on putting a course and mastermind group together, but in the meantime I'm putting out a weekly newsletter with noteworthy news about the industrial market. It's free to subscribe: https//www.industrialinsiders.com. I should have more info on the course and mastermind group shortly as well.
Hope! Halfway around the world, we will help more Americans expand their business to Vietnam.
Vietnam’s economy has some bright days ahead!
@@industrialize Thanks for the good things.
Are you able to cover underwriting a warehouse flip?
That's a really interesting idea. I have a long term perspective on everything I own, so I'll reach out to a few people who have successfully flipped warehouses and invite one of them on to do an interview about how they approach the process. I'll make sure I line up the right person so there's value there and not a lot of fluff either.
@@industrialize Wow. I literally found your channel like an hour ago and everything about it (including your super quick response) has me floored. I'm currently interested in finding value-add industrial opportunities in Southern California. Doing my best to learn as much as possible, but trying to particularly sharpen my skills when it comes to assessing repairs and generating proper analysis (including cash flow modeling and calculating cap rate/sale projections). Watching more of your videos as we speak - great work!
@@eldowns I'm going to find a guest who can help shine some light on it! I can speak to the value add component as well as I'd like to think every property I've bought had an immediate lift on purchase. I'll post back when I've got someone lined up!
Hello Dear,this is Ken from Gurki Pack,we are 25-year-old factory on packing machine,top supplier in this field.Many e-commerce and warehouse customers use our machine to cut their packing cost. Welcome to ask when in need.
I just bought an industrial land for my new warehouse.
Fill me with some important keys on what to expect
Here are a couple quick thoughts:
1. When you build balance your needs with the next user in mind (at some point you may want to sell so try to identify what will be appealing to future owners);
2. Stay on top of routine maintenance (ie/ HVAC, roof) and meticulously document everything you do. This will save money in the long run and show future buyers you were a diligent owner.
So what I got basically from this video is that it is a nightmare of logistics unless you know your exact type of client.
That's a fair observation. Definitely requires intimate knowledge of exactly what the client needs and being able to match them with a compatible property.
Wonderful video. Here Canadian purchase Industrial property Of US, anything need to be aware?
Much appreciated! The first thing I'd do is have a good team around you (a local lawyer, broker & banker). They'll help walk you through the process and connect you with any other professionals that need to be brought in, such as an appraiser, environmental tech, etc. Then commit to studying everything you can about the market you're looking at. This will include market stats like vacancy and absorption, but dive deeper to find out what properties are selling for, what deals are getting done in the lease market and see if there is one sub-type of industrial performing better than others. And make sure you know any potential weaknesses of the property as well. It all starts with having a good team so make sure you're prudent in who you select. Good luck!
@@industrialize Can we schedule a zoom meeting ?
send me an email at griffithscre@gmail.com and we can set something up
I have two acre of kiadb land in Bangalore I can build 56400 sft and for rent and lease
Great video - this guy fucks
Likes 250
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Good video! I've always found industrial real estate appealing particularly warehouses but I do want to know where would you rank them compared to other types of real estate like office buildings, medical centers, malls, retail stores, etc in terms of profitability and increased value over time?
Great question David! I'll aim to do a video answering this in more detail but at a high level I think industrial will see a couple years of aggressive growth as supply tries to catch up to demand, followed by more stability (and perhaps downward pressure if too much inventory is added). By comparison, I think there is pain in the forecast for office and retail will be flat, at best. Medical office is another great option as there will be growing demand as the population ages. Maybe the saying should be Beds, Sheds & Meds as the best asset classes to invest in!
my question is, where did you buy that container ship model?🥹 great video📈🧏🏽♂️
It's the Lego Maersk Triple-E set!