Industrial Advisors

If you could build the perfect industrial building, what would you build?

Co-hosts Matt McGregor and Bill Condon discuss the perfect building for the Puget Sound market. They talk about the different factors that would make a building ideal for both large and small investors, including size, location, and amenities.

Co-hosts Bill Condon and Matt McGregor sit down with Nicole Sayers of Colliers to discuss the current state of the debt and equity markets. We discuss the following topics:

• Rising commercial interest rates and how they are affecting businesses
• The challenges of getting commercial debt, especially for high-risk businesses
• Current trends in the debt and equity markets, such as the increasing use of technology and alternative lending sources
• How interest rates and inflation affect the debt and equity markets
• How geopolitical events, such as trade tensions and political instability, impact the debt and equity markets

Key Takeaways:

• Commercial interest rates are rising, which is making it more expensive for businesses to borrow money. This can make it difficult for businesses to raise capital and expand their operations.
• It is becoming more challenging to get commercial debt, especially for businesses that are considered to be high-risk. This is because lenders are becoming more cautious about lending money to businesses that may be unable to repay their loans.
• There are a number of current trends in the debt and equity markets, including the increasing use of technology to automate and streamline the lending process and the growing popularity of alternative lending sources, such as peer-to-peer lending and crowdfunding. These trends are changing the way that businesses raise capital.
• Interest rates and inflation can have a significant impact on the debt and equity markets. When interest rates rise, the cost of borrowing money increases, which can make it more difficult for businesses to raise capital. Additionally, rising inflation can erode the value of corporate earnings, which can make stocks less attractive to investors.
• Geopolitical events, such as trade tensions and political instability, can also have a significant impact on the debt and equity markets. When there is uncertainty in the global economy, investors tend to become more risk-averse, which can lead to a decline in stock prices and an increase in demand for safe assets, such as bonds.

Call to Action:

If you are a business owner who is considering raising capital, it is important to be aware of the current state of the debt and equity markets. You should also speak with a financial advisor to get personalized advice on the best way to finance your business.

Mentioned in this episode:

IndustrialAdvisors.com

Nicole Sayers, Senior Vice President

Capital Markets | Debt & Equity

[email protected]

Mobile: +1 916 844 5450

What is considered a flex property and what are the issues surrounding the market right now?

Co-hosts Bill Condon and Matt McGregor define what a flex building is and discuss the current and historic activity and vacancy of the market. They break down why the flex market is struggling and why rates are not tracking with the bigger box assets.

Mentioned in this episode:

IndustrialAdvisors.com

What are the top 10 trends to watch in the industrial real estate market, and how will they affect investors, tenants, and the overall industry?

Co-hosts Bill Condon and Matt McGregor discuss the latest trends, from green goals and credits and incentives to market stability and the potential for a port slowdown.

1) Green Goals

2) Credits and Incentives

3) Market stability

4) Top Tenants making a rebound after a lot of cancelled starts through 2022.

5) Flight to quality

6) Transaction rebounds: after a very slow start to capital markets in 2023, the action is returning.

7) Increased rent continuing.

8) Another huge absorption year?

9) Less construction in many markets is a huge indicator of a changing tide coming.

10) Port slow down?

Mentioned in this episode:

IndustrialAdvisors.com

In this episode, hosts Bill Condon and Matt McGregor look at what has happened to Frederickson over the years, including its "connection" to Sumner, what has brought giants like Amazon, IKEA, and Best Buy to the area, the #1 issue tenants have today, and what the future of Frederickson may hold.

• Matt explains that Frederickson became what Sumner was with the difference that, while Sumner took 20 years to absorb, Frederickson is going to take about 7.
• Frederickson wasn't even a market… but then the Best Buy deal happened, and it was followed by a ton of corporate tenants – which now make the area a phenomenal market.
• Labor may not necessarily be the first thing that comes to mind, but it's the biggest issue tenants face today.
• Bill goes over the key reasons that have led corporations to get a location in Frederickson, making it what it is today.
• All the developers wanted to be down the I-5 corridor but being in Frederickson developers and corporate tenants have a labor situation that isn't as sticky as that of other areas closeby.
• Bill touches upon what may be in store for Frederickson in years to come.

Mentioned in this episode:

IndustrialAdvisors.com

Davis Property & Investments - davispropertiesllc.com

Panattoni.com

BestBuy.com

FloorAndDecor.com

Amazon.com

IKEA.com

What's the current state of West Coast capital markets? And what role may the recent bank failure play?

Co-hosts Bill Condon and Matt McGregor are joined by Colliers Western Region Executive Managing Director of Investment Services – and Ironman – Michael Kendall to talk all things West Coast capital markets.

They discuss the recent past of West Coast capital markets, how the role of risk has changed, and what the recent bank failure may mean for potential buyers and investors.

• Michael gives an overview of the current state of the West Coast market.
• Typically, Q4 is one of the busiest times for the Colliers West Coast team managed by Michael, but not last year. Both Colliers and its competitors had zero valuations going, then things changed. Michael discusses why he believes that happened.
• Michael, Bill and Matt talk about the recent bank failure and its potential repercussions on the market.
• According to Michael, risk didn't matter last year and wasn't priced properly. Now risk matters, maybe even too much as it's being overpriced.
• Michael explains the difference between a forward (or vacancy) and a short-term wall, and shares his thoughts on the impact of debt on the capital markets world.
• Michael shares his insights and an example regarding land value in core markets on the West Coast, which have historically been hard to get.

Mentioned in this episode:

IndustrialAdvisors.com

Michael Kendall - colliers.com/en/experts/michael-kendall

[email protected]

Colliers.com

What does the college selection process look like these days? What are some of its most challenging aspects?

Co-hosts Bill Condon and Matt McGregor welcome high schooler Mahrin McGregor who opens up about the college selection process she's currently going through – from the impact of the pandemic and her #1 worry all the way to Mahrin's best advice for someone who's about to get started with it.

• Mahrin discusses her experiences of applying to colleges as someone who's been in High School through the pandemic.
• She applied to 14 colleges, and is now down to three – Mahrin walks Bill and Condon through her top picks.
• Picking the wrong school and realizing that only when she's there (and feeling "forced" to request a transfer as a result) is what Mahrin sees as the most challenging thing about trying to pick a college.
• Mahrin shares her advice for people who are about to go through the college selection process.

Mentioned in this episode:

IndustrialAdvisors.com

How has the first quarter of 2023 been for the Puget Sound market? And what's to come in Q2?

Co-hosts Bill Condon and Matt McGregor do a review of Q1 and predict what may happen in the new year. Listen to learn more about leasing and subleasing, the theme of the market, the largest deal of the quarter, and what has been taking place in the development space, in terms of port activity.

• For Matt, Q1 was a good quarter despite some bad news in the media.
• Absorption numbers are misleading but, overall, it has been a good quarter from a leasing standpoint.
• The current vacancy rate in South Seattle is the highest Matt has seen in his entire career.
• There's been a red flag: nationally, the Puget Sound region has continued to outpace the national increase in subleasing.
• However, numbers are increasing quarter after quarter, which will probably lead to it becoming a story a year from now.
• If last year's theme of the market was "We're not buying but we're waiting for the right opportunity," today it's "We've got to play some money."
• Do you have 95% of your capital on the sidelines because you're looking for a discount? According to Matt, there won't be one…
• The $25.1M Bellevue's Safeway Bottling Plant deal was the largest deal of the quarter.
• Matt and Bill discuss what's currently happening in the development space, as well as regarding port activity.
• Bill believes that the further south you go, the bigger building you will want to build to differentiate yourself from the rest of the market.

Mentioned in this episode:

IndustrialAdvisors.com

Previous episode - Dramatic Subleasing Growth in the United States - https://podcasts.apple.com/us/podcast/dramatic-subleasing-growth-in-the-united-states/id1483238743?i=1000595319067

TrammelCrow.com

Panattoni.com

What does it mean to be one of the leaders on the development side of the Pacific Northwest?

Co-hosts Bill Condon and Matt McGregor welcome Panattoni's Seattle Partner and NAIOP Developer of the Year winner Travis Hale. The three discuss Panattoni's development during 2022, talk about the company's market strategy for the current year, and touch upon what Travis refers to as "four great transactions to institutional buyers.

• Travis does a recap of Panattoni's development, as well as the market, during last year.
• Q3 of 2022 saw the rise of some debt increases – Travis discusses its impact on Panattoni's outlook and approach.
• What's Panattoni's market strategy for the current year? Travis takes back the curtain to share what the company is and will be focusing on in 2023.
• Travis talks about what he considers "four great transactions to institutional buyers."

Mentioned in this episode:

IndustrialAdvisors.com

Travis Hale - panattoni.com/wp-content/uploads/2018/03/Travis-Hale-April-2022.pdf

Panattoni.com

Link Logistics (by Blackstone) - blackstone.com/insights/article/how-esg-objectives-strengthen-link-logistics

LaSalle.com

FedEx.com

What does the present South Seattle industrial real estate space look like? And what about its future?

Co-hosts Bill Condon and Matt McGregor talk about the current state of the Seattle market – including the factors that have contributed to the low performance, the role of expensive labor, and potential future repercussions of the current status quo.

• Bill and Matt share a couple of factors they think are contributing to the Seattle market not performing as well as other markets.
• Bill talks about what has been happening, over the last few years, because of the lack of expensive labor in the area.
• Matt and Bill discuss some of the potential future repercussions of the current status quo.
• Bill touches upon the fact that the tenant market gets deeper as you push South, as well as that the Seattle market traditionally doesn't see many big tenants.

Mentioned in this episode:

IndustrialAdvisors.com

Prologis - prologis.com