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What’s happening with Industrial Real Estate?

| September 29, 2017
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At Haydel Biel & Associates, we like to educate our clients and prospective clients on new and unique investment opportunities. We do this because we believe that understanding what investments are available to you and learning what your portfolio is made of will help you be empowered to further pursue your financial goals. To that end, we hosted an investment dinner at the Arroyo Chophouse on August 3rd, where we heard from an engaging speaker from Sealy Strategic Equity Partners, L.P. who discussed their investment opportunity in industrial real estate.

Why Industrial Real Estate?

You’ve probably heard about companies that are pursuing a higher level of customer service by offering same day delivery. While Amazon is the most well-known of these businesses, others are coming up behind them to compete, such as Instacart, Nordstrom, and Walmart. In a 2016 study examining the future of retail, 9% of consumers polled said they have used same-day shipping in the past year. This number is predicted to grow since almost half of these consumers admitted they would use this service more if it was offered more widely. (1)

In order to make same-day delivery a reality and be a competitive force in the industry, businesses need warehouses in strategic locations all over the country.

The Future of Industrial Real Estate

This sector of real estate is witnessing incredible growth. In 2014, demand outpaced supply twofold and supply has not kept up. Since 2008, new construction has not addressed the need for facilities under 250,000 square feet. (2)

Industrial spaces appeal to a wide variety of tenant types, uses, and industries due to their generic and versatile design. Industrial properties offer features such as ceiling height, loading docks and column spacing, which meet the needs of tenants and will continue to do so. Landlords tend to benefit from limited expenses as their tenants typically pay the taxes, insurance, and property maintenance, in addition to their rent. Rent for these spaces continues to rise, with 2016 numbers surpassing the previous high set in 2008 and increased rates forecasted in the future. (3)

What Sealy Brings To The Table

Sealy’s team offers a depth of talent and experience in the real estate industry. The Sealy team has been assembled over the past 20 years and shares individual histories of delivering outstanding results. With a focus on industrial real estate properties since the 1970s, Sealy has developed strong institutional relationships across all aspects of their business. Their strategy involves purchasing quality properties below replacement cost in locations with proven job growth and a strong transportation infrastructure. They then fill their spaces with successful and creditworthy tenants with a diverse industry mix.

Is Sealy A Good Fit For Me?

Are you interested in diversifying your portfolio to include investments in the industrial real estate sector? If you would like more information about Sealy or are curious about other unique investment ideas, rely on HBA Wealth for unbiased advice and guidance. Contact us at (626) 529-8347 or email Ricky directly at [email protected].

About Haydel, Biel & Associates

Haydel, Biel & Associates, is an independent financial advisory firm serving individuals and families near Pasadena, California. The firm was founded in 2004 by Chris Haydel and Ricky Biel with a desire to provide unbiased, client-centered, community-based financial advice. Together, they have built a practice that has grown into a family of caring, smart professionals committed to blending proven investment methodologies with creative financial technologies that make it easier than ever to accomplish your goals. They strive to keep things simple and fun to give their clients peace of mind and alleviate financial stress. HBA Wealth takes care of their clients’ needs first and foremost and goes the extra mile to make their clients’ finances grow. To meet and see how the HBA Wealth team may be able to help, contact them today at (626) 529-8347 or email Ricky directly at [email protected].

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(1) https://www.walkersands.com/images/files/image/pdf/Walker-Sands-2016-Future-of-Retail-Four-Key-Takeaways-for-Retailers-in-2016-and-Beyond-Whitepaper.pdf

(2) http://f.tlcollect.com/fr2/315/71292/US_Industrial_MarketView_Snapshot_Q3_2015.pdf

(3) https://www.cbre.com/research-and-reports/United-States-of-America-Industrial-MarketView-Q3-2016

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