“With every challenge comes a new opportunity to adapt to something and be a pioneer in a space that’s less saturated. For NNN investors who are willing to take that and be creative, there is huge potential for success in the coming months and years.” Read more
When commercial real estate investors want to acquire a new property, they often go to what they know. Their portfolios may consist of many similar types of properties. But it doesn’t have to be that way! Diversifying a real estate portfolio can be one way to ensure sustainable, steady growth over the long term. Commercial real estate investors may shy away from industrial properties for sale if they have never considered one before, but there is great growth in the industry and there can be strong returns to investors who do it right.
GlobeSt.com and GlobeSt. Real Estate Forum are pleased to reveal the 2021 selection for Influencers in Net Lease. Originally published on GlobeSt.com.
Working with SIG brokers is the best way to leverage top listings, lending, and marketing efforts. In this deal, SIG lead broker Rahill Lakhani, along with co-broker David Choi, was able to sell this Starbucks property fast and over the initial price offer.
As a commercial real estate investor, you may be seeking out the next opportunity right now, or just keeping your options open for future investments. New investment opportunities offer a great chance for you to diversify and grow your portfolio, or simply a chance to trade out a lower performing property for something that will bring you more value in the long run. Whether you currently have a vast array of property types or you’ve focused on one primary type like office buildings, you may be wondering about other ways to increase your investments — and your income. One type of commercial property that can help you grow your portfolio is commercial warehouses for sale.
Commercial warehouses come in all sizes, and they can be used for small, local businesses selling items online or for large, multi-state or multi-national companies with huge ecommerce and sales success. They are found across the country in order to serve their customers, who range from businesses to consumers to even a single company storing items until they are needed. No matter the size of the warehouse, there are a few key benefits investors have found when investing in this type of commercial real estate property. Let’s dive a little deeper into investing into the warehouse property type.
Why Invest in Commercial Warehouses
Investing in commercial warehouse properties for sale often makes sense for people. These leases tend to be much longer term, so you won’t have to constantly seek out a new tenant. With options for a longer lease, commercial warehouses can be a great property for triple net leases, where you can pass off many of the maintenance and tax costs to the tenant. You’ll see a higher return on this property type in most cases, as well. While commercial warehouses may have a higher entry point, most investors make their money back relatively quickly with this high value opportunity zone real estate.
Right now, we are still in the post-pandemic market. During the past 15+ months, ecommerce boomed, which means that there has been a great demand for commercial warehouses for sale across the country. People got used to online shopping and have shifted much of their shopping habits away from brick and mortar stores. This trend of online shopping and businesses needing warehouse space is not going away any time soon. That makes this a great time to invest in commercial warehouses to grow your commercial real estate portfolio.
3 Pros of Commercial Warehouses For Sale
Because commercial warehouses are in high demand, both from businesses and from their customers who are continuing to shop online necessitating more warehouse space for processing orders, these three advantages can be found with this type of commercial real estate:
- Higher return on investment
- Long-term leases
- Lower maintenance needs and costs
3 Cons of Commercial Warehouses
Now, as with anything, there are cons to investment opportunities. So you have the best information going into any investment, you should know these three challenges associated with investing in a commercial warehouse:
- Higher entry costs
- Longer timeframe for finding new tenants
- Technological advancement may outpace the space
Top Tips to Finding the Best Commercial Warehouse Opportunities
When you’re looking for the right commercial warehouse to invest in, there are a few key things to keep in mind. Location is very important to these types of businesses, but often in a different way than other properties you may currently own. Here are four elements of the location to understand when seeking out a commercial warehouse space to invest in.
Location: Distribution centers and warehouses are often located near large population centers. This means there will be better access to more trucks for cross-country delivery. But a large population area doesn’t necessarily mean a big city, which would have more traffic and increased costs. You can find warehouses properties for sale in every state, and in most cities too. In most cases no matter where the warehouse is located, investors are able to plan for reliable monthly income with few landlord responsibilities, especially when tenants and landlords agree to a NNN lease.
Space: With a commercial warehouse, there needs to be plenty of space for delivery of product. The business relies on receiving products, as well as processing orders and distributing products. This means they will need to have space for trucks to come and go and unload or load materials. Commercial warehouses are often best situated near transportation, like highways or interstates, as well as airports or ports (if located near oceans and large rivers used for transportation). Because the costs of bringing in materials and shipping them out is usually more than half of the expenses these businesses see, location really matters for warehouses.
Storage: Aside from needing space for loading and unloading, commercial warehouses can be used for other things than ecommerce. The changing supply chains now mean more businesses have a need for extra storage or manufacturing space. Some businesses or product types need climate-controlled commercial warehouse space, and across the country the industry has seen a demand for cold storage during vaccine distribution. Storage for products, manufacturing, or other needs as supply chains, businesses, and offices change is continuing to grow.
Height: A unique element to commercial warehouses is the need to understand the importance of height (floor to ceiling space inside the building). The property’s square footage only tells part of its storage capacity, in floor space. But with height, this gives investors and tenants a better idea of the unobstructed space within the building, representing the stacking potential of warehouse contents like crates and boxes.
Work with a Pro to Find the Right Commercial Real Estate for Sale
When you partner with a commercial real estate broker who has your goals in mind, you are better equipped to find the right listings and properties to grow your portfolio. At Sands Investment Group, our brokers across the country work with you to identify your goals, define success on your terms, and find the properties that fit your needs including industrial properties, office spaces and a variety of commercial properties. If you’re ready to discuss adding a commercial warehouse to your portfolio in the post-pandemic market, contact the broker team today by calling 844.4.SIG.NNN or sending an email.
As the NYC subway returns to 24-hour service, indoor dining expands to 75% capacity, and indoor social gatherings expands to a 250 person limit, it’s a welcomed sight to see New York City re-opening! And, we are very much looking forward to attending in person this June 16-17 for NET LEASE Spring 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.
If you’ve been researching investment opportunities in commercial real estate, you have probably come across many terms you are unfamiliar with. It can seem overwhelming to figure out if investing in real estate is truly what you want, especially when you don’t understand what is being discussed.
Investors are always looking for the next opportunity. Whether you are new to commercial real estate investments or you have a robust portfolio already, a convenience store for sale might make a great addition to your portfolio. Convenience stores are always in demand, and are found in just about every city, town, or community across the country. A convenience store or c-store meets the essential needs of their communities and considered recession-proof, too, as customers will stop to buy what they need even if they don’t have a ton of disposable income, especially if the store is located in a good area near people’s work, home, or commute.
Each year, Quickbase customers and partners from around the world get together for 3 days of innovation, inspiration & connection at Empower. Session tracks cover product how-to’s, best practices, case studies, thought leadership and much more.
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.
As investors seek the next right opportunity to add to their portfolios, there are a number of businesses that can make a good fit. Sometimes, investors have focused solely on one type of business in the past, but may be looking to expand into a new industry. Other times, an investor might be looking to sell off one property and invest in another one. And yet other investors simply want to add to their portfolio in an industry that they know will not be going away any time soon.
From medical offices to strip malls and everything in between, real estate investors are constantly looking for the next investment opportunity to expand their portfolios. There is no shortage of investment opportunities, after all, and nearly every industry needs dedicated investors to help them succeed especially when investing in businesses for sale. As an investor, growing your portfolio and seeing a profit on those investments is undoubtedly important to you. Finding the right investment is key to that success.
SIG broker Kaveh Ebrahimi successfully closed 34 urgent care locations capitalizing on sector growth, selling 23 properties in 2020 and 11 YTD, while continuing to add listings into 2021.
Working with SIG brokers is the best way to leverage top listings, lending, and marketing efforts. SIG broker Kaveh Ebrahimi has specialized in urgent care facilities over the past 6 years, pioneering the sale of urgent care properties by closing on his first location back in 2015. Since then, his sales numbers continue to increase as he currently has 14 urgent care clinics in escrow with 4 scheduled to close in April 2021.
Opening the doors of Sands Investment Group during the global financial crisis in 2010, Chris Sands has thrived in the face of hard times from the very beginning. He stays committed to investing for success well into the future by focusing on relationships built by win-win deals, collaboration and transparency. In 2020, through its founder’s leadership, SIG doubled in size—gaining recognition as one of Inc 5000’s Fastest Growing Private Companies in America.
Shopping centers can be a great opportunity for commercial real estate investors. They offer variety in tenants, consistent income, and great potential for growth in the future. A shopping center can look very different, depending on the town or city, as well as the types of tenants the center tends to attract. Some may have a lot of chain stores, while others might have mostly local businesses. There may be a mix of retail, grocery stores, clothing stores, and furniture stores. Oftentimes, there can be many moving parts with shopping center investments, as there are usually multiple retail tenants to manage at any given time.
March 12, 2021 – By Chris Sands: Throughout 2020, commercial real estate demonstrated its stability and value despite a wide range of unanticipated challenges. While we can generally understand the market within a 10-year timeframe that includes adapting to market corrections, the global Covid-19 pandemic created a more significant challenge than we’ve seen before in terms of our ability to predict investors’ outcomes.
Sands Investment Group (SIG), one of the nation’s fastest-growing net lease brokerage firms, has completed the sale of a 70,000-square-foot office space in Huntington, West Virginia. SIG net lease broker offer unparalleled coverage of buyers and sectors in commercial real estate – nationwide.
In this transaction, SIG lead broker Teddy Leonard, along with co-broker Matson Kane, were able to assist their client in the successful acquisition of this 70,000 SF Amazon Customer Service property in Huntington, WV despite many challenges that arose in March at the end of the transaction due to the pandemic. SIG got involved on a local level by setting up meetings with local officials, including the Huntington Mayor, and the leaders of the investment group to alleviate concerns the investors had in the deal.
- Amazon Customer Service, Huntington, WV
- Property Type: Office Space
- Client Type: Private Equity Buyer
- Price: $16,851,771
- CAP: 7.00%
- Challenge 1: First large-scale transaction for the Buyer. The Seller needed to be made comfortable with their ability to close the transaction.
- Challenge 2: Asset in secondary market.
- Challenge 3: 70,000 square foot building with large rent presented some challenges to provide sale/rent comps.
- Placed the client goal as a top priority which was looking for an investment grade tenant with a 7%+ yield.
- Pandemic wiped out 30% of the committed money in syndication and buyer had to get creative to find replacement investors two weeks before closing.
Interested in acquiring an office property for sale to add consistent returns in your investment portfolio? SIG handles new loans on locations for clients who are seeking to expand their portfolio and acquire NNN properties in all different niches. When the goal is growing an investment portfolio with specific properties, you can’t trust a typical real estate agency to walk you through the process. SIG is a commercial real estate brokerage firm with a wealth of experience helping clients find, secure, and purchase properties to round out their investment portfolio.