Commercial Real Estate Investments

Investing in Commercial Real Estate

When investing in commercial real estate we believe that increasing corporate investment in research and development, combined with a reshoring of U.S. manufacturing and supply chains, will drive attractive demand fundamentals for the Technology and Industrial Commercial Real Estate asset classes over the next 5 to 10 years.

Our fundamentals-based investment process capitalizes on opportunities in the commercial real estate sector with the specific objectives to:

  • Preserve investor capital
  • Make regular cash distributions
  • Realize capital appreciation, and provide liquidity through repurchase agreements

Commercial Property Investing Sector Fundamentals

Some of the commercial property investing includes e-commerce, reshoring and R&D.

E-commerce

As consumer demand for online shopping keeps growing*, e-commerce will continue to drive demand for industrial properties (and specifically distribution and logistics spaces).

Reshoring

U.S. companies will continue to seek to move operations to domestic locations to maintain greater control and oversight of their supply chains.

R&D

Over the past ten years, the industrial flex asset class has grown significantly due to increased tenant demand. R&D facilities represent the 3rd largest category of Commercial Real Estate and have seen a 288% increase in occupancy in the last ten years.

  • Industrial and technology companies utilize R&D/flex facilities to develop, test and improve new and existing products and services. Corporations in these sectors prefer R&D/flex facilities as they offer the ability to house multiple space types within one facility, which can offer these corporations efficiency and cost savings.
  • From Q1 2010 to Q1 2020, the total square footage of R&D/flex space increased from 44M square feet to 171M square feet, while flex transaction volume increased from $3.4B to $24.6B.**

*Rakuten Intelligence, U.S. e-commerce sales rose 24% from March 1-17, 2020
**Real Capital Analytics

Target Properties

TECHNOLOGY SPACES

Given the highly digitized nature of modern commerce, most companies require some degree of data storage that requires specific facilities to house the storage equipment, run IT systems, and facilitate cloud storage and computing, including climate control and security protocols.

INDUSTRIAL SPACES

Distribution warehouses function as critical hubs in logistics networks. The space must allow companies to effectively serve their customer base and add efficiencies to the overall process through automated technologies, sufficient dock space, and proximity to freeways, railways, or airports if needed.