Tag Archive for: industrial real estate

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Insights Into The Future of Industrial Real Estate

In a world where the dynamics of real estate are constantly evolving, the Industrial Asset Class stands out as a beacon of growth and opportunity. Domenic Mandato, the visionary leader of InvestPlus REIT, shares his expert insights on why this sector is more crucial than ever in the current economic landscape. In this edition of “From Dom’s Desk,” we explore the promising future of Industrial Real Estate and what it means for investors.

 

Industrial Real Estate: A Sector in Evolution: The Industrial Asset Class has long been a cornerstone of the real estate market, known for its resilience and steady returns. Today, this sector is undergoing a remarkable transformation, driven by changes in global trade, e-commerce expansion, and evolving consumer demands. These shifts are not just reshaping the industrial landscape; they’re opening up new avenues for investment and growth.

Why Industrial Assets are More Relevant Now: Domenic emphasizes that the current economic trends are making industrial properties increasingly valuable. With the rise of online shopping, there’s a growing demand for warehouse and distribution centers. Similarly, the shift towards domestic manufacturing and supply chain diversification is boosting the need for industrial spaces. These factors combined are creating a robust market for industrial real estate investments.

Global Trends Influencing the Sector: The Industrial Asset Class is not just influenced by local market dynamics but also by global trends. Domenic discusses how international trade policies, technological advancements, and sustainability initiatives are playing a pivotal role in shaping the future of this asset class. He believes that staying ahead of these trends is key to maximizing investment opportunities in the sector.

InvestPlus REIT’s Strategy for Industrial Assets: At InvestPlus REIT, the approach towards industrial assets is strategic and forward-looking. Domenic shares the REIT’s vision of investing in high-potential industrial properties, focusing on locations and facilities that are poised for growth and sustainability. The goal is not just to capitalize on current market trends but to be prepared for future shifts in the industrial landscape.

A Call to Action for Investors: Domenic invites investors to explore the potential of the Industrial Asset Class with InvestPlus REIT. He highlights the importance of understanding the market’s nuances and the long-term benefits of investing in industrial properties. This sector, as Domenic notes, offers a unique blend of stability and growth potential, making it an attractive option for savvy investors.

🔍 Stay Informed with “From Dom’s Desk“: As the Industrial Asset Class continues to evolve, stay tuned to “From Dom’s Desk” for more insights, analysis, and updates from Domenic Mandato. Together, let’s navigate the exciting world of industrial real estate and uncover the opportunities that lie ahead.

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Cap Rate Compression: A Sign of Growing ROI with InvestPlus REIT

Investing in real estate offers numerous pathways to wealth, and understanding cap rate compression is crucial for investors looking to maximize their returns. InvestPlus Real Estate Investment Trust (REIT), a private investment fund based in Calgary, Alberta, showcases a compelling track record in leveraging cap rate compression to enhance investor ROI. Focused on acquiring, owning, and managing commercial and residential properties in western Canada, InvestPlus REIT has mastered the art of creating value in under-valued and under-managed properties.

What is Cap Rate Compression?

Cap rate, or capitalization rate, is a metric used to evaluate the return on investment for real estate properties. It is calculated by dividing the property’s net operating income by its current market value. Compression occurs when cap rates decrease, typically indicating an increase in property values and, consequently, a potential rise in ROI for investors.

Why Cap Rate Compression Matters for Your Investment

Cap rate compression is often a sign of a strengthening market, where demand for properties increases, driving up values and lowering cap rates. For investors in InvestPlus REIT, this phenomenon is a positive indicator. The REIT’s strategy involves identifying and transforming under-valued and under-managed properties into high-value assets. As the market appreciates and cap rates compress, the intrinsic value of these investments grows, offering investors a higher return on their investment .

InvestPlus REIT’s Approach to Cap Rate Compression

InvestPlus REIT employs a strategic approach to investment that not only focuses on immediate returns but also on the long-term appreciation of assets. By targeting properties in western Canada with potential for value creation through active management and strategic improvements, InvestPlus positions its portfolio to benefit from market dynamics that lead to cap rate compression. This approach has allowed InvestPlus to build a robust portfolio of commercial and residential properties, showcasing their capability to deliver strong returns to investors.

For those looking to enhance their investment portfolio, understanding and capitalizing on cap rate compression is essential. InvestPlus REIT’s strategic investments in the real estate market demonstrate the potential for significant ROI growth through this phenomenon. By focusing on properties with high potential for appreciation and actively managing assets to increase their value, InvestPlus REIT offers investors a smart solution to maximize their returns in a dynamic market.

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Operational Excellence and Hidden Assets in Real Estate

There are so many factors that contribute to or prove to be detrimental to any business’s success. Being in the real estate industry for many years now, InvestPlus REIT has seen and experienced all sorts of challenges. During times of adversity, this is when businesses are tested most, and this is where operational excellence comes into play.

What is operational excellence, and why is it important to your business?

Operational excellence in real estate is being able to manage a huge volume of real estate properties really well—consistently. Not everyone can do it right, and it takes a certain skill set to grow a real estate company successfully. With operational excellence as part of your arsenal, better business-related decision-making can be expected, resulting in positive effects for your company.

Handling the marketplace can truly be stressful at times, especially during recessions and special unforeseen events such as the pandemic. When everyone is affected by soaring interest rates, measures must be taken in order to ensure profit for both the seller and buyer. How do we achieve this?

Debt Can Be an Asset!

About 5−6 years ago, we started exiting multifamily and went into industrial real estate. It is important to note that exiting and knowing when to sell falls under operational excellence too. Always keep in mind that exiting or selling will depend on where your company is, what your goals are for your company, and how exiting aligns with those factors.

For InvestPlus REIT, there were challenges when we moved into industrial real estate. Buyers wanted long-term financing and we found ways to work on this as well as timelines ourselves. Fortunately, we locked in our rates before the W.H.O declared the pandemic which drove interest rates up. It is in this kind of scenario that assumable debt becomes an asset.

With solid mortgage terms, you can sell your property along with it assumable debt that in time, still proves to be profitable even for the buyer. From the outside, this asset may be invisible! This is why working with reliable real estate investors can truly pay off for interested parties, as advice and factors taken into decision making are backed by years of experience.

Creativity is an Asset Too

It is important to note that each and every scenario is different. As an example, InvestPlus REIT President and CEO Domenic Mandato has faced about four recessions in his years as a real estate investor. All those instances raised the following questions:

  • How are the problems going to be handled?
  • How can we take advantage of the situation?
  • What is working/not working in the company?
  • What S.O.P.s can be standardized and improved?
  • How can we still generate income even within our portfolio?

Market crashes and times of adversity are always great opportunities to look inward. It’s a good time to reflect and rethink what works and how to build on it along with what is no longer serving the goals of the company. Discovering inefficiencies help us improve and exercising creative thinking plays an important role in coming up with solutions!

Scratch that—being creative is critical to success. No matter your role in the company there are always different perspectives that can and should be taken into consideration when coming up with innovative solutions. Consider this…

Ask your co-workers, spouse, someone who isn’t in the same field as you are, or even your kid a question that relates to your business and listen closely to their insight. This kind of creative brainstorming can spark genius solutions you would not have thought of because you’re so deep into the world of real estate. Hearing fresh input can re-jig your senses and come up with new answers to the all important real estate question: Where else can we grow?

Remember operational excellence and your hidden assets!

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