In this episode of the Industrial Insights podcast, Justin Smith interviews Parth Pethani, the Director of Warehouse Design and Innovation at Prologis. They discuss the evolution of robotics in warehousing, the challenges faced by warehouse operators, and the role of Prologis in providing innovative solutions. Parth shares insights on the maturity curve of warehouse automation, the importance of data analysis, and the emerging trend of Robotics as a Service. The conversation highlights the need for self-education in the industry and the exciting future of warehouse technology.

 

Key Takeaways

• Robotics is becoming increasingly important in warehouse design.
• The concept of 'robot forward warehousing' is gaining traction.
• Warehouse operations face challenges such as rising rents and labor costs.
• Every warehouse goes through a maturity curve in automation.
• Data analysis is crucial for optimizing warehouse operations.
• Robotics as a Service is a viable business model for many companies.
• Self-education is essential for successful automation transformations.
• Prologis aims to be a growth partner for its clients.
• Emerging technologies are reshaping the future of warehousing.
• The integration of AI and robotics will enhance warehouse efficiency.

 

Chapters

• Introduction to Robotics in Warehousing
• 05:34 - The Evolution of Warehouse Automation
• 11:05 - Prologis' Role in Warehouse Solutions
• 16:22 - The Intersection of Real Estate and Automation
• 22:56 - The Discovery Process in Automation Solutions
• 29:29 - Robots as a Service: A New Business Model
• 35:56 - Future Innovations in Warehouse Management Systems

 

Episode Resources

Connect with Parth Pethani

• https://www.linkedin.com/in/parthpethani/

Connect with Justin Smith

• https://smithcre.com/
• https://www.lee-associates.com/
• [email protected]
• https://www.linkedin.com/in/justinbsmith

In this episode of the Industrial Insights Podcast, Justin Smith interviews Rob Jensen, a PhD graduate in supply chain management, about his new venture focused on warehouse optimization. They discuss the importance of reducing overhead costs through efficient picking processes, the role of technology in modern warehouse operations, and the creation of a digital twin for better management. Rob shares insights on the ideal clients for their solutions, the value proposition based on cost savings, and the significance of education and networking in the supply chain industry.

 

Key Takeaways

• Rob Jensen has a PhD in supply chain management from the University of Arkansas.
• His company focuses on warehouse optimization to reduce overhead costs.
• The picking process in warehouses can be optimized significantly.
• Heuristics can limit efficiency in warehouse management systems.
• Creating a digital twin of a warehouse helps in optimizing pick paths.
• The ideal clients for their solutions are third-party logistics companies.
• Robotics in warehouses come with challenges that need careful consideration.
• Their pricing model is based on the savings they provide to clients.
• Education and networking are crucial in the supply chain industry.
• E-commerce growth is driving demand for third-party logistics services.

 

Chapters

• 05:28 - Understanding Warehouse Picking and Optimization
• 10:30 - Creating a Digital Twin for Warehouse Optimization
• 15:37 - Value Proposition and Cost Structure
• 20:09 - Conclusion and Future Opportunities

 

Episode Resources

Connect with Rob Jensen

• https://www.linkedin.com/in/robert-f-jensen/
• [email protected]

Connect with Justin Smith

• https://smithcre.com/
• https://www.lee-associates.com/
• [email protected]
• https://www.linkedin.com/in/justinbsmith

In this episode of the Industrial Insights podcast, Justin Smith interviews Neal Perry of Industry Coatings, discussing the intricacies of painting industrial buildings. They explore best practices, the evolution of paint materials, project management in new builds, challenges in color selection, and the importance of preventative maintenance. Neal shares insights on graffiti management, the aesthetic considerations in warehouse painting, and the significance of choosing the right materials for long-term value. The conversation emphasizes the need for due diligence when hiring contractors in the painting industry.

 

 

Key Takeaways

• Every job in painting is unique and requires problem-solving.
• Paint materials have evolved significantly due to regulations.
• Project management is crucial in new construction painting.
• Color selection impacts the longevity of paint jobs.
• Seasonal weather has minimal impact on painting schedules in Southern California.
• Repainting requires thorough evaluation and preparation of the building.
• Graffiti management can involve sacrificial and non-sacrificial coatings.
• Preventative maintenance can extend the life of paint and prevent damage.
• Aesthetic improvements in warehouses can enhance tenant appeal.
• Due diligence is essential when hiring contractors to ensure quality work.

 

 

Chapters

• 02:35 - The Evolution of Paints and Materials
• 04:54 - Project Management in New Builds
• 09:42 - Design Considerations and Material Choices
• 12:00 - Challenges with Color Longevity
• 13:24 - Seasonal Impacts on Painting Projects
• 14:32 - Understanding Repaints and Common Issues
• 18:44 - Evaluating Building Maintenance and Joint Repairs
• 21:12 - The Importance of Regular Painting and Maintenance
• 22:05 - Addressing Graffiti: Solutions and Challenges
• 24:46 - Preventative Maintenance: Keeping Buildings in Shape
• 27:07 - Aesthetic Considerations in Warehouse Painting
• 29:20 - Choosing the Right Materials for Property Value
• 32:44 - Due Diligence in Hiring Contractors

 

 

Episode Resources

Connect with Neal Perry

• https://www.linkedin.com/in/neal-perry-655b1839/

Connect with Justin Smith

• https://smithcre.com/
• https://www.lee-associates.com/
• [email protected]
• https://www.linkedin.com/in/justinbsmith

 

Justin Smith and John Gaglio explore various aspects of real estate investment and development. They discuss the importance of having an investor mindset, the unique challenges and opportunities in different markets, and the significance of collaboration in achieving successful projects. The dialogue emphasizes the need for adaptability and strategic thinking in the ever-evolving landscape of real estate.    

Key Takeaways

• The investor mindset is crucial for success in real estate.
• Understanding local markets is key to effective investment.
• Collaboration can lead to innovative solutions in development.
• Global perspectives can enhance investment strategies.
• Adaptability is essential in the changing real estate landscape.
• Effective communication fosters better partnerships.
• Preparation is vital for navigating investment challenges.
• Different markets require tailored approaches.
• Continuous learning is important for investors.
• Building relationships is fundamental in real estate

 

Chapters

• 02:39 - Understanding Power Demand in Modern Buildings
• 05:34 - The State of the Power Grid in Southern California
• 08:36 - Utility Rules and Regulations Explained
• 11:18 - Navigating Electrical Upgrades for Buildings
• 14:24 - The Importance of Upstream Capacity
• 16:58 - Transformers: The Gatekeepers of Power
• 23:43 - Understanding Electrical Load and Utility Coordination
• 28:38 - Cost Dynamics in Electrical Upgrades
• 35:08 - Navigating Utility Relationships for Successful Projects
• 42:41 - The Importance of Communication and Relationships

 

Episode Resources

Connect with John Gaglio

• https://linkedin.com/in/john-gaglio-569b46236/

Connect with Justin Smith

• https://smithcre.com/
• https://www.lee-associates.com/
• [email protected]
• https://www.linkedin.com/in/justinbsmith

Chris Vassilian and Justin Smith discuss the evolving landscape of subleasing in Southern California, highlighting current trends, challenges, and the dynamics between landlords, tenants, and subtenants. They explore the implications of market fluctuations, the importance of financial credit, and the complexities of navigating direct leases versus subleases.

 

Key Takeaways

• Subleasing is increasingly common in Southern California.
• Market fluctuations have created a unique subleasing environment.
• Subleases often offer flexibility but may lack concessions.
• Racking can enhance the attractiveness of a sublease.
• Landlords may have the right to recapture subleased space.
• Financial credit of the sublessor is a growing concern.
• Subleasing introduces complexities with three parties involved.
• Direct leases can sometimes be cleaner but less efficient.
• Timing is crucial when subleasing to avoid paying rent unnecessarily.
• The current market has many subleases available for consideration.

 

Episode Resources

Connect with Chris Vassilian

• https://www.linkedin.com/in/chris-vassilian/

Connect with Justin Smith

• https://smithcre.com/
• https://www.lee-associates.com/
• [email protected]
• https://www.linkedin.com/in/justinbsmith

In this episode of the Industrial Insights podcast, Justin Smith interviews David Hickey from Hickey & Associates about the complexities of economic incentives in site selection. They discuss the various factors influencing site decisions, the misconceptions clients often have about incentives, and the importance of compliance and administration in capturing these incentives. David emphasizes the role of utilities in economic development and the current trends in industrial development, particularly in relation to power demand and sustainability. The conversation highlights the need for strategic planning and early engagement in the incentives process to maximize benefits for businesses.

 

Key Takeaways

• Incentives can strengthen business cases but won't fix bad locations.
• Clients often have unrealistic expectations about incentives.
• Understanding the local business climate is crucial for site selection.
• Compliance is a significant factor in receiving incentives.
• Utilities are becoming key partners in economic development.
• Economic development strategies should focus on retention and expansion.
• The California Compete Tax Credit is a competitive program.
• Many incentives are underutilized due to lack of awareness.
• Timing is critical when considering incentives for projects.
• The demand for power is a growing concern for industrial users.

 

Chapters

• 02:49 - Understanding Client Mindsets and Expectations
• 05:25 - Navigating Incentives: The Role of Brokers
• 08:18 - The Importance of Compliance in Incentive Programs
• 11:28 - California Competes Tax Credit: A Competitive Process
• 14:25 - Utility Incentives and Economic Development
• 23:07 - Utility Partnerships and Performance Targets
• 24:57 - The Role of Utilities in Site Selection
• 27:29 - Community Engagement and Power Demand
• 30:38 - The Semiconductor Boom and Infrastructure Needs
• 34:25 - Incentives and Economic Development Trends
• 37:09 - Navigating the Fiscal Cliff of Incentives
• 42:03 - Timing in Strategic Decision Making

 

Episode Resources

Connect with David Hickey

• https://www.linkedin.com/in/davidphickey/
• https://www.hickeyandassociates.com/

Connect with Justin Smith

• https://smithcre.com/
• https://www.lee-associates.com/
• [email protected]
• https://www.linkedin.com/in/justinbsmith

In this episode of the Industrial Insights podcast, Justin Rappel from Pacific Industrial discusses the current state of the industrial real estate market, focusing on acquisitions and development strategies. He shares insights from his transition from brokerage to the principal side, the challenges and opportunities in various markets, and the impact of recent legislation on development. Rappel emphasizes the importance of understanding market dynamics, underwriting strategies, and the significance of building features in attracting tenants. The conversation also touches on the company's investment philosophy and the outlook for the future of industrial real estate.

 

Key Takeaways

• Justin Rappel transitioned from brokerage to acquisitions manager at Pacific Industrial.
• The industrial real estate market is currently facing supply constraints in various regions.
• Understanding tenant needs is crucial for successful development projects.
• Recent legislation in California is impacting industrial project approvals.
• The disconnect between buyer and seller expectations is a significant challenge.
• Yield on cost is prioritized over IRR in Pacific Industrial's investment strategy.
• Building features must align with long-term tenant needs and market demands.
• Market dynamics are constantly shifting, requiring adaptability in strategies.
• Networking and relationship-building are essential during market downturns.
• There are opportunities for growth and development despite current market challenges.

 

Chapters

• 02:48 - Transitioning from Brokerage to Principal
• 05:27 - Acquisitions and Development at Pacific Industrial
• 08:24 - Market Insights: Salt Lake and Vegas
• 11:10 - Navigating the Southern California Market
• 13:52 - Current Development Projects
• 16:49 - Legislative Impacts on Development
• 19:45 - Underwriting Strategies and Market Dynamics
• 22:23 - Building Features and Design Considerations
• 28:12 - Future Trends and Market Sentiment

 

Episode Resources

Connect with Justin Rappel

• https://www.linkedin.com/in/justin-rappel-ab591285/
• https://www.pac-industrial.com/

Connect with Justin Smith

• https://smithcre.com/
• https://www.lee-associates.com/
• [email protected]
• https://www.linkedin.com/in/justinbsmith

In this episode of the Industrial Insights podcast, Justin Smith and Ralph Asher delve into the complexities of supply chain management, discussing current challenges, the role of automation, and the importance of data analytics. They explore how companies can optimize their supply chains through effective modeling and decision-making, while also addressing the implications of nearshoring and the evolving landscape of logistics. Ralph shares insights from his experiences at General Mills and Target, emphasizing the need for collaboration and problem-solving in the industry. The conversation concludes with advice for aspiring supply chain professionals and reflections on recent trends in the field.

 

Key Takeaways

• The importance of personal growth in professional settings.
• Navigating challenges can lead to unexpected opportunities.
• Building relationships is key to success.
• Reflection on past experiences can guide future decisions.
• Embracing change is essential for development.
• Collaboration can enhance problem-solving capabilities.
• Understanding different perspectives fosters better communication.
• Setting clear goals helps in achieving desired outcomes.
• Learning from failures is crucial for growth.
• Maintaining a positive mindset can influence outcomes.

 

Chapters

• 02:13 - Current Challenges in Supply Chain Management
• 05:25 - The Role of Automation in Supply Chains
• 08:51 - Understanding Client Needs and Demand
• 10:31 - Data Collection and Analysis in Supply Chain
• 13:22 - Exploring 3PL Options and Cost Structures
• 15:48 - Warehouse Automation and Its Implications
• 18:17 - Modeling Techniques and Best Practices
• 21:00 - The Future of AI in Supply Chain Modeling
• 22:43 - Trends in Data Utilization and Analytics
• 27:37 - Nearshoring and Its Impact on Supply Chains
• 30:12 - Lessons from Experience in Major Corporations
• 33:55 - The Importance of Collaboration and Problem Solving
• 35:57 - Advice for Future Supply Chain Professionals

 

Resources

Connect with Ralph Asher

• https://www.linkedin.com/in/ralphasher/ 
• https://datadrivensupplychain.com/

Connect with Justin Smith

• https://smithcre.com/
• https://www.lee-associates.com/
• [email protected]
• https://www.linkedin.com/in/justinbsmith

In this episode of the Industrial Insights podcast, Justin Smith interviews Rob Quarton from Walker & Dunlop, discussing the evolving landscape of commercial real estate financing. They explore the impact of the pandemic on the market, current trends, and the outlook for various asset classes, including industrial, multifamily, and retail. Rob shares insights on innovative financing strategies and the importance of networking through organizations like NAIOP. The conversation emphasizes the need for adaptability and proactive engagement in the real estate sector.

 

 

Key Takeaways

• The pandemic caused a significant pause in the real estate market, but recovery is underway.
• Interest rates have a profound impact on real estate financing and investment strategies.
• There is a growing optimism in the market as rates begin to stabilize and decrease.
• Retail and industrial sectors have shown resilience and growth post-pandemic.
• Networking and relationships are crucial for success in real estate transactions.
• Innovative financing strategies are being implemented to navigate current market challenges.
• The importance of understanding asset class performance is key for investors and developers.
• Preparation and proactive engagement can lead to better opportunities in real estate.
• NAIOP provides valuable networking opportunities for professionals in the industry.
• The market is dynamic, and staying informed is essential for making strategic decisions.

 

 

Chapters

• 00:00 - Introduction to Commercial Real Estate Financing
• 02:54 - Navigating the Pandemic's Impact on Real Estate
• 05:40 - Current Trends in Real Estate Financing
• 08:58 - Dealing with Challenges in Real Estate Transactions
• 11:33 - Market Activity and Future Outlook
• 14:38 - Strategies for Success in a Volatile Market
• 17:42 - Asset Class Performance: Industrial, Multifamily, and Retail
• 20:24 - The Evolving Office Space Landscape
• 23:32 - Innovative Financing Strategies
• 26:44 - Preparing for Future Opportunities
• 29:21 - Involvement in NAIOP and Networking Opportunities

 

Episode Resources

Connect with Rob Quarton

• https://www.linkedin.com/in/rquarton/

Connect with Justin Smith

• https://smithcre.com/
• https://www.lee-associates.com/
• [email protected]
• https://www.linkedin.com/in/justinbsmith

In this podcast episode, Chris and Justin discuss various aspects of supply chain logistics, focusing on the concept of blend and extend leases. They explore the reasons behind this leasing strategy, the importance of landlord contributions to building improvements, and strategies for landlords to attract tenants to vacant properties. The conversation highlights the current market dynamics and the need for flexibility in leasing agreements.

 

Key Takeaways

• The busiest airport for freight in the US is Memphis.
• Blend and extend leases are becoming more common in today's market.
• Landlords may need to contribute to building improvements to attract tenants.
• Vacancy rates are a concern for landlords in the current market.
• Short-term leases can be a strategy for attracting tenants.
• Understanding tenant needs is crucial for successful leasing.
• Landlords are willing to negotiate to maintain occupancy.
• Capital investments in buildings can lead to better lease agreements.
• Market rates are higher than legacy rates for many tenants.
• Creative leasing strategies are necessary in a competitive market.

 

Chapters

• 01:29 - Exploring the Concept of Blending and Extending Leases
• 03:12 - Factors Influencing the Decision to Blend and Extend
• 05:36 - The Role of Building Improvements in Lease Negotiations
• 06:24 - Strategies for Leasing Buildings in a Competitive Market