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Evaluating Industrial Property Locations: Key Factors For Investors

Industrial properties are increasingly recognized as lucrative investments, thanks to the booming e-commerce sector, growing logistics demands, and revitalized manufacturing industries. However, success in this sector requires more than recognizing demand—it requires a strategic approach to evaluating locations. Understanding factors such as accessibility, market trends, workforce availability, and regulatory compliance is critical to ensuring stability and long-term asset performance.

The Role of Accessibility and Infrastructure in Industrial Real Estate

Accessibility is central to the success of industrial properties. Locations with excellent transportation links—highways, railways, ports, and airports—support cost-effective logistics and operational efficiency. Properties close to suppliers, production centers, or key consumer markets further streamline supply chains. Urban-edge areas or logistics hubs in growing metropolitan regions often offer the dual benefit of affordability and connectivity. These characteristics make accessibility a fundamental consideration when assessing industrial property investments.

Market Demand and Growth Potential: The Stability Factor

Assessing market demand and growth potential is critical for maintaining stable industrial assets. Properties in regions with high absorption rates and low vacancy rates signal strong tenant demand, which contributes to steady cash flow and reduced risk. For example, industrial properties in Sunbelt markets like Nashville, Atlanta, and Dallas-Fort Worth have experienced year-over-year rent increases of over 8%, according to Commercial Edge’s Industrial Market Report. Investors benefit from focusing on regions where population growth, economic expansion, and industry development align to support long-term stability.

Workforce Availability: A Key to Tenant and Property Performance

A property’s proximity to a skilled and reliable workforce is critical for tenant satisfaction and operational efficiency. Industrial operations often require a mix of skilled and unskilled labor, and areas with a strong labor pool offer long-term stability. In order to understand the ability to hire in the area, you must assess labor market conditions, including availability, wage trends, and employment stability, ensuring investors choose properties in regions that meet workforce requirements. Workforce availability not only attracts tenants but also supports sustained demand for the property.

Navigating Zoning Laws and Regulatory Complexities

Zoning laws and environmental regulations play a crucial role in industrial real estate. These regulations dictate permissible uses and operational constraints, directly affecting a property’s functionality. Properties that meet these requirements reduce legal risks and maintain tenant usability. Understanding zoning and regulatory compliance ensures that an investment property aligns with both legal standards and operational needs. Investors must conduct thorough due diligence to mitigate risks and safeguard their investments against future challenges.

Property Condition and Flexibility: Maximizing Tenant Appeal and Yield

The condition and flexibility of a property significantly impact its investment value and tenant appeal. Tenants increasingly prioritize facilities that support modern technology, operational adaptability, and room for expansion. Investors should carefully evaluate structural integrity and major systems such as HVAC and roofing. These “big ticket” items play a crucial role in lease structures where landlords bear maintenance costs and remain vital in triple-net leases, as they influence tenant satisfaction, retention, and the property’s marketability. Ensuring a property is well-maintained and adaptable strengthens its position in the market, bolsters tenant appeal, and enhances long-term financial performance.

In conclusion, evaluating industrial property locations requires a methodical approach that balances accessibility, market demand, workforce considerations, regulatory compliance, and property flexibility. These factors collectively determine the potential of an industrial investment to deliver stable returns and future growth. As investors navigate this dynamic sector, a keen eye on market trends, thorough due diligence, and strategic decision-making will set them apart in securing high-performing assets. By understanding and leveraging these critical aspects, investors can position themselves for success in the thriving industrial real estate market.

Contact the SIG Industrial team today to explore tailored strategies for industrial property investments and achieve your financial goals.

Investing in the Future: Seizing Opportunities in Early Education Facilities

The early education sector is emerging as a hotbed of commercial real estate investment, driven by profound demographic shifts and economic changes. Despite disruptions during the pandemic, demand for modern early education facilities continues to grow, making the future of this property type promising for savvy investors. Let’s explore the key factors shaping this opportunity and why now is the time to invest in the future of early childhood education.

1. Shifting Demographics & Post-Pandemic Recovery

Urban and suburban areas are seeing a surge in young families seeking quality early education for their children. While COVID-19 caused enrollment to plummet—dropping from 54% to 40% for 3- to 4-year-olds between 2019 and 2020—there’s been a steady recovery. By 2021, enrollment climbed back to 50%, and the trend continues upward.

Adam Bridges, Senior Investment Advisor at Sands Investment Group, notes, “We’ve seen a strong bounce back in childcare enrollments post-pandemic, which is encouraging for investors looking at performance at the unit level.”

This recovery presents an opportunity to meet the growing demand for innovative, high-quality facilities, especially as more parents re-enter the workforce. With young families and strong employment rates driving the need for modern learning environments, now is the time to invest in this resilient market.

2. The Impact of Expiring Pandemic Funding

As pandemic-related financial support for early education facilities ends, there’s a shift towards long-term sustainability. During the crisis, many centers relied on federal grants, but now the focus is on operators who can thrive independently.

Bridges explains, “When underwriting a center, we factor out pandemic grant money to ensure long-term viability. Investors need to pay attention to tenant resilience—especially as federal aid is phased out.”

For investors, this makes tenant stability a critical factor. SIG’s research highlights the importance of partnering with operators who are self-sufficient and able to provide stable cash flows. The right tenants will ensure a robust return on investment in a post-pandemic world.

3. Dual-Income Households & the Rising Demand for Reliable Childcare

With both parents working in most households, childcare has become a necessity. This societal shift has transformed early education facilities into essential infrastructure, especially in suburban areas where childcare options are scarce.

“Childcare is no longer a luxury—it’s essential for dual-income households,” Bridges emphasizes. “Investors who cater to this need are not only filling a market gap but also providing a vital community service.”

Investors who develop or repurpose properties into early education centers are addressing a growing societal need while securing solid investment returns. Facilities offering full-day programs that align with parents’ work schedules are in high demand, making them attractive both socially and economically.

4. Economic Resilience & Stability

One of the most appealing aspects of investing in early education is its economic resilience. Unlike other commercial real estate sectors that experience fluctuations, early education remains a steady and essential service. Parents consistently prioritize their children’s education, even in tough economic times.

“Early education is a stable product type with growing operators nationwide,” says Ryan Sompayrac, SIG’s Investment Sales Advisor. “We’re seeing expansion and development in the number of operators and facilities in the education space, making this sector a solid choice for growth-oriented investors.”

How SIG Helps Investors Navigate the Early Education Market

At SIG, we understand the complexities of investing in early education. Our team offers expert guidance in identifying high-quality tenants who can operate independently of short-term financial aid. We closely monitor market trends and policy changes to help investors make informed decisions.

Bridges further highlights, “SIG’s national platform allows us to connect our clients with out-of-state buyers willing to pay a premium, helping them maximize their investment returns.”

By partnering with SIG, investors can confidently navigate the evolving landscape of early education facilities and capitalize on the rising demand in this sector. Whether you’re a seasoned investor or new to this market, our team is here to help position your investments for long-term success.

Contact us today to learn more about our services and how we can help you achieve your financial goals.

The New Face of QSR Properties: Adapting to Changing Consumer Behaviors

In the ever-evolving Quick Service Restaurant (QSR) landscape, staying ahead of changing consumer behaviors is not just an advantage—it’s a necessity. Today’s QSR properties are not merely about fast food; they’re about smart, sustainable choices, technological advancements, and a commitment to quality that resonates with a new generation of consumers. It’s also becoming increasingly evident that in this dynamic arena, the role of informed, expert guidance cannot be overstated. This is where our team of product-type specialists come into play, offering expertise and insight into the QSR investment landscape, ensuring our investors are not just keeping pace but actually setting the pace in the industry. Read more →

triple net property

What Are The Most Profitable Types Of Commercial Real Estate Investments?

It takes more than the desire to grow your financial portfolio to start investing in commercial real estate. The savvy investor conducts a lot of research into the most profitable types of commercial properties before making any decisions. It’s essential to know with certainty that you will be able to give your investment total commitment. 

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Understanding Sale Leasebacks in Commercial Real Estate Transactions

Some investors need unique ways to finance an investment. Conventional loans, bridge loans, Small Business Administration (SBA loans), and even some other alternatives that many investors aren’t even aware of. Some of these options are a great way for investors to diversify and grow their portfolio while getting rid of properties that may not serve them anymore but keep the businesses that do.  Read more →

1031 Exchange Property

What is the 1031 Exchange Intermediary Definition?

When conducting a 1031 exchange, investors can utilize a 1031 exchange intermediary for an easier process. The term 1031 exchange comes from the Internal Revenue Code (IRC), section 1031, which states, “No gain or loss shall be recognized on the exchange of real property held for productive use in a trade or business or for investment if such real property is exchanged solely for real property of like kind which is to be held either for productive use in a trade or business or for investment.”

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CVS For Sale: The Smart Investment of 2021

As an investor searches for their next property opportunity, there are many different types of real estate that may jump out as a possibility. From fast food restaurants to strip malls and everything in between, real estate can be a lucrative investment opportunity. In 2021, especially, it can seem like there are many good options for investments. One such investment that can add significant value to a growing real estate portfolio is a CVS for sale.

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Auto Parts Stores for Sale: Finding the Right Property

Investors are seeking triple net properties that can generate robust returns, even during market downturns. Another requirement is selecting brick-and-mortar retail properties with the ability to compete with e-commerce as consumers purchase more and more items online. One category of retail property fits these prerequisites to a ‘T’—an auto parts store or business for sale, which may be one of the industry’s best-kept secrets.

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