Tag Archive for: real estate investing

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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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From Dom’s Desk: Growing with the Times

Investing can be a truly scary thing, especially considering today’s market conditions. However, there are ways to mitigate your risks and position yourself in an advantageous spot despite the many challenges presented by investing in the real estate scene. At InvestPlus REIT, we take years of experienced backed by numbers and data into consideration when making investment decisions. These have allowed us to grow even during the pandemic—not an easy feat given the global challenges all businesses and markets were, and still are facing!

How were we able to do this?

We knew that industrial real estate was the next big thing way back in the day. Back in 2012, Domenic Mandato (CEO of InvestPlus REIT) had discussions with real estate investors who first introduced industrial real estate to him. That was when the seed was planted, but it wasn’t until 2017 that he positioned himself in that market. Industrial real estate isn’t governed by the same factors as residential or other commercial real estate market conditions. Because of this, it can stay in demand for the long-term.

The ecommerce boom placed a lot of pressure on commercial space. Opportunities for a business’s growth can often come from the birth of other circumstances, in this case, the legalization of marijuana and the rise of ecommerce. Investors in this market need buildings to grow multiple crops, and with industrial real estate properties, they are able to do so. The demand for space is there—it still is! And since the government takes a long time releasing land, being in a position where we can rent out industrial real estate properties puts us in an advantageous point. Acquiring in times of uncertainty can position you where there might be opportunities!

Last but definitely not the least, the InvestPlus REIT’s team’s expertise, strategy and talent paired with marketing and technological support has definitely contributed to the continuous growth of our company. We are very grateful for the people we work with in making this dream possible—for our business and for others!

REITs and the Future

While predictions always come with their own risks, we are able to take calculated risks by looking at the numbers because at the end of the day, numbers do not lie. We always consider: “What is the rental income for this property?” and determine the yield and cap rates because value comes down to that. We have seen a big trajectory in acquisition in the last two years, even buying in the middle of the pandemic. It is important to note though that InvestPlus is very selective when it comes to acquisition, taking cap rates, interest rates, and sellers’ expectations all into consideration. Some investors refinance properties. In our case, most of our portfolio is locked in with half of the interest rates today, and mortgage will come up at about 2025, and given the tumultuous market where the value of properties drop and interests rise, more investors are considering diversifying into REITS.

For anyone looking to diversify their investment portfolio, REITs allow them to do that with rules set in place that protect the interests of the investor. These rules include but are not restricted to: always having a board and the investors getting paid with 90% of REIT cashflow that the company produces. Because of this and other rules firmly set in place, there is safety, stability, strength, and protection when diversifying one’s investments with REITs.

These are just some of the reasons why REITs have performed so well in the past 20-30 years, and why it will continue to have an edge over residential and/or other commercial real estate properties.

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