Minneapolis specialist offers tips for closing industrial transactions now.
“We are getting calls daily from investors looking to buy,” Kolsrud says in “Four Steps to Closing a Transaction Amid a Pandemic,” published in April by the Society of Industrial and Office REALTORS®. “This is not a down market when it comes to investments. We are representing buyers looking for opportunities throughout the country.”
Transactional opportunities abound—if you know where to look.
Kolsrud can attest to that, having just closed an industrial portfolio sale composed of 59 properties and 7 million square feet that sold for nearly $650 million. While it may seem like an anomaly, this transaction indicates a few trends:
- Large investment firms are seeking to close transactions.
- Industrial property is more popular than ever because of its high liquidity and sustainable momentum.
- Bigger is better: Multibuilding portfolios are the most sought after product.
By pursuing transactions carefully, industrial real estate professionals can keep their businesses going in 2020. Read the entire article at sior.com(link is external) for more recommendations.
In the article, Kolsrud offers four steps to follow while working on industrial transactions in 2020.
- Know your investor: Some investors have dry powder and debt sources, while others have large barriers to capital.
- Consider your client’s portfolio: This labor-intensive step requires you to assess the situation carefully from your client’s viewpoint and consider critical questions about the portfolio’s salability and marketability, tenants’ creditworthiness, and other factors.
- Use an established, expert network like SIOR: SIOR members can help you identify potential clients who need your expertise or spacing availability.
- Value integrity over income every time: When faced with a temperamental market and uncertain future, it may be tempting to place a higher premium on just getting all parties to sign on the dotted line. Instead, think about long-term relationship building.