The Commercial Real Estate Investor Podcast

Key Takeaways:

- Hiring a third party asset manager can allow an owner to take a step back from day-to-day operations and focus on other goals or investments

- An asset manager acts as the CEO to oversee finances and hold the property manager accountable

- It makes sense to consider an asset manager once a portfolio grows to around 100-200 units

- When onboarding a new asset, an asset manager will evaluate financials, goals, timelines, team members, and identify any issues or opportunities

- Turning around an underperforming property requires fixing maintenance issues, improving marketing, addressing tenant complaints, and ensuring the property manager is actually completing tasks

https://www.tylercauble.com/podcast/episode181

Key Takeaways:

- The commercial real estate market is slowing down significantly compared to last year, with brokerage volumes down 50% or more for many brokers.

- Investment sales have dried up considerably, while leasing remains more active as companies still need space. However, cap rates have risen significantly.

- The office market faces uncertainty, especially for Class B properties, but Class A properties and well-located spaces are holding up better. Co-working faces challenges after WeWork's issues.

- Industrial, especially Class B, remains in high demand due to limited supply. However, there is a large amount of new Class A inventory that could face vacancies if the market pulls back further.

- Retail fundamentals remain uncertain but some brokers see opportunities in Class B strip centers. However, new retail development is limited after the "retail apocalypse."

- The brokers plan to focus on over-communicating with clients, thinking creatively for new opportunities, growing their teams, and ramping up prospecting and business development activities in the challenging 2024 market.

https://www.tylercauble.com/podcast/episode180

- The real estate market is facing challenges like higher costs, difficulty obtaining financing, and uncertainty about the future. However, this also creates opportunities for investors who can find good deals.

- Local politics and policies have a major impact on real estate markets, more so than who is in the White House. Investors need to pay attention to their local areas.

- Expectations for investment returns will likely need to be adjusted downward, with a focus on cash flow over high IRRs.

- Rising costs like insurance are major issues in addition to interest rates, making deals harder to make work financially.

- 2024 may see opportunities emerge as developments from the past few years deliver properties into a difficult market environment. Having cash available will be important.

https://www.tylercauble.com/podcast/episode179

Key Takeaways:

- Tyler is taking a sabbatical from mid-December to mid-January to recharge and plan for the new year.

- He is working on a book about commercial real estate investing and companion materials to help visualize deals.

- For 2024, Tyler is interested in smaller neighborhood commercial properties, industrial/outdoor storage, flex space, and some residential construction.

- He thinks now is not the best time to invest in multifamily due to high prices and low yields. Cap rates need to increase more before it makes sense.

- Covered land plays that cash flow are appealing investment opportunities.

- Networking, mailing lists, and leveraging one's platform are effective ways for investors to find deals without using expensive services like CoStar.

https://www.tylercauble.com/podcast/episode178

Key Takeaways:

- Self-serve car washes can provide high cash-on-cash returns, often 30-90%, through improvements like adding credit card readers and changing wash timers.

- Locations with high traffic and growth are ideal, as are sites that have been undermanaged and offer opportunities for operational improvements.

- Common value-add improvements include updating signage, credit card capabilities, and in-bay automatic equipment.

- Self-serve car washes provide diversified revenue streams from multiple bays and amenities compared to single-tenant tunnel washes.

- Ongoing management involves daily cleaning, equipment maintenance, and cash handling but can become relatively passive once optimized.

https://www.tylercauble.com/podcast/episode177

Key Takeaways:

- Tyler is excited about the potential of industrial outdoor storage/vehicle storage properties as covered land plays that can provide good cash flow. He discusses underwriting assumptions and marketing strategies for these types of properties.

- Tyler discusses his brokerage business and some recent listings they have picked up. He also mentions a drone he recently purchased to help with property marketing photos/videos.

- Tyler fields various questions from listeners about commercial real estate topics like cap rates, specific markets, leasing to certain business types like wine bars, and more.

- Tyler seems optimistic about investment opportunities in 2023 and 2024, expecting some distressed selling opportunities as interest rates impact property owners.

https://www.tylercauble.com/podcast/episode176

Key Takeaways:

- It's important to find your niche and become a thought leader in your area of commercial real estate

- Having the right systems and infrastructure like a CRM and calendar are crucial for staying organized

- Leveraging technology like podcasts and blogs can help generate leads and position you as an expert

- Building a team is important for scaling, but you need to clearly define roles and expectations

- It's valuable to get experience on both the landlord and tenant representation sides of commercial real estate

https://www.tylercauble.com/podcast/episode175

Key Takeaways:

- Tyler believes that while office space may decline, it will not disappear completely and flexibility will be important going forward

- Flex space is a high-demand asset class with low supply due to redevelopment of existing flex properties

- Commercial real estate values have already declined by around 25% and more declines may come as sellers are forced to lower prices

- It's still a good time to buy commercial real estate if the numbers work, as properties will appreciate over the long run

- The market is becoming more of a buyers market, which provides opportunities but will require more work to find good deals

- Interest rates increasing have already slowed the commercial real estate transaction volume

https://www.tylercauble.com/podcast/episode174

Key Takeaways:

Commercial real estate has been slow to adopt new technologies compared to residential real estate

Prop tech (property technology) is evolving rapidly, with new tools for things like 3D scans, floor plans, analytics, and more

The future of commercial brokerage is uncertain but brokers will likely still provide value as advisors on complex deals

Emerging technologies like AI, AR/VR, and flexible/short-term leasing models could continue to impact the industry

Data quality and accessibility remain issues, with opportunities for new platforms to improve on incumbents like CoStar

https://www.tylercauble.com/podcast/episode173

Key Takeaways:

Industrial outdoor storage properties can provide a good covered land play through cash flow from truck parking and potential for appreciation through different exit strategies like selling to investors, developers, or tenants.

It's important to find properties in good locations near major highways and without crime or security issues when evaluating potential sites.

Self-management is possible but requires flexibility and a system to efficiently handle tenant issues as they come up. Outsourcing management tasks can help scale the business.

Utilities, taxes, insurance and management are the main ongoing expenses, while truck space rentals around $175/month each can provide good gross income if the property is mostly leased.

https://www.tylercauble.com/podcast/episode172