In today’s industrial real estate market, there is a lack of high-quality assets being listed. That's surprising, because since COVID shifted everyone’s day-to-day life in the beginning of 2020, the demand for properties with national-credit industrial tenants has skyrocketed.
Many net lease investors suddenly had their routine rent collections being disrupted, with tenants crying out that store sales had plummeted. But for building suppliers, last-mile distribution facilities, and truck maintenance and repair shops, COVID was merely a speed bump.
With a slew of on- and off-market properties for sale, I receive daily calls from investors ranging from individuals to institutions and private equity groups, all hunting for potential acquisitions. There is so much capital out there looking for an opportunity that buyers are inquiring about any off-market assets that may fit their criteria. The truth is, every property is for sale “off-market” at the right price.
One of the reasons there aren’t more listings is that owners are often unaware of how valuable their assets have become. The larger, national tenants are buying up the smaller competitors on a constant basis.
For a seller, the problem with this off-market approach is that a buyer submitting an off-market offer knows they have no competition, and they no longer need to put their best foot forward. These buyers hunt bargains. If they submit 100 lowball offers and one gets accepted, then that was worth it to the buyer. Without price discovery through an evaluation, market exposure, and investor competition that occurs with a listed offering, a seller is unlikely to get full market value for their real estate.
An owner can get a better idea of their industrial property's market value by working with a Real Estate professional who works exclusively in that asset type. An experienced professional can also provide context for timing a sale while investor demand is high. If the owner decides to proceed with a listing, a savvy broker will be invaluable in vetting offers to identify buyers most likely to close the transaction successfully.
Today’s market is unlike anything we have ever seen before. There is a lack of quality inventory on market and interest rates are still hovering at record lows. With the amount of 1031 exchange buyer’s trying to find product, it would be worth evaluating your property to look at the numbers. Contact me for a free consultation. Together we can evaluate your options to realize maximum value for your property.