Where to Start for Commercial Investing (industrial/warehouse/retail)?

Question

Hello everyone

I have been investing in residential and commercial multifamily properties for the past 2 years, but am getting very interested in the Commercial Investing (industrial/warehouse/retail) space. As a person who doesn't have much knowledge in this area, where would you suggest is the best place to start to get the ball rolling. I ordered a book that was suggested to me from someone in that space and have connected with a few people that work in this space, but just looking for other ideas. I am also thinking of starting a meetup focused on this space to meet as many people as I can and learn/connect with them. I feel its a little more niche compared to multifamily and harder to connect with people in this space, so any ideas you have would be great!

Appreciate it!

Henry Clark · Answer

Would focus on the following:

Zoning, special/conditional use variance process, planned zoning,

Engineering- building, traffic, soil compaction, water flow,

Permitting, fire suppression, fire hydrants, storm pounds, storm sewers, ADA,

Governmental- soil erosion, floodplain, wetlands,

Leasing, NNN, CAM,

Valuation approaches.   Cost, comparables, income base.

Insurance coverage.  Business income loss, liability, additional insured,

The above are some good topics to cover that are to some degree either different or greater emphasis.

Account Closed · Answer

Happy to share my experience/knowledge/lessons with flex warehouses and logistics subtype within the industrial asset class. Feel free to DM me.

Palani (Pono) Wright · Answer

Your approach of reading books and connecting with people in the industry is a good start. Here are a few additional ideas to consider:

Join online forums and groups: There are many online forums and groups dedicated to commercial real estate investing. Joining these groups can be a great way to connect with other investors, ask questions, and learn from their experiences. Online communities like LinkedIn groups dedicated to commercial real estate.

Consider taking courses or certification programs: Investing in commercial real estate requires a different set of skills and knowledge compared to residential real estate.

Partner with experienced investors: Partnering with experienced investors can help you learn the ins and outs of commercial real estate investing while also mitigating your risks. Look for investors who have experience in the type of properties you're interested in and are willing to share their knowledge and expertise.

Starting a meetup focused on commercial real estate investing is also a great idea. This can be a great way to network with other investors in the industry and learn from their experiences. Good luck with your investment journey!

Contact me if you have any further questions, happy to help.

Ronald Rohde · Answer

I'd follow this forum for your specific asset class. Just pick one.

Retwit on twitter is good. I, along with others, post frequently on YouTube which is a great source.

I invest in industrial NNN in DFW, over 100,000 sq ft

Henry Clark · Answer

Look on loopnet in your area.  Pick a commercial property you might be interested in.  Do a “quick” deal analysis and post here.  If you don’t know something or it will take a lot of work just put ???? Marks. Have us give feedback.

Brock Mogensen · Answer

I'm very bullish on the industrial asset class.  Definitely some differences from multifamily. The most important being the lease.  The deal is all about the lease and properly budgeting for cap ex.

Ronald Rohde · Answer

Industrial is the lowest physical tenant needs on an net lease. Demand is still high from covid, ecommerce eats up huge lots, infill locations are needed and city zoning won't allow more construction, thus keeping supply down. Finally, its scalable. I invest $2-300k with partners, 5 year lease, autopay, I can spend time looking for my next deal without too much management for my employees.

Jason Merchey · Answer

OK well I should bow out, I don't have any knowledge about that space from a GP or active investor perspective..... save for the fact that On the Market is a podcast I like, and they get into some big, macro issues that impinge upon markets (including the commercial space). The latest episode that really stood out to me was when economist Mark Zandi of Moody's Analytics was interviewed.

Best,

Wendell Butler · Answer

Thank you all for the feedback! @Jason Merchey I am just talking commercial as a whole, whether it be me buying it myself or as a GP in a syndication. I am just trying to understand the space more.

Jason Merchey · Answer

Hi Wendell, are you talking as an LP or a GP?

Where to Start for Commercial Investing (industrial/warehouse/retail)?

Most Popular Reply