by Yieldstreet | Staff
After decades of simply maintaining the status quo, the industrial real estate market is experiencing a period of exciting growth. On this episode of The Yield, Mitch Rosen, Yieldstreet Senior Director of Real Estate sits down with Peter C. Lewis, Chairman/Founder of Wharton Equity Partners to discuss the rapidly changing landscape of industrial real estate. Because of the growing nexus of technology and real estate, companies like Peter’s are continuing with strategies of not only owning real estate but making investments in companies whose technology and products operate within that real estate.
[1:54] The integral role of technology in the metamorphosis of the real estate market.
[2:44] A high-level overview of trends in industrial products in real estate.
[8:33] The impact of same-day delivery on industrial real estate investments.
[11:29] Supply and demand means rent in industrial spaces is at an all-time high.
[13:30] How might the future change in consumer demand affect industrial real estate?
[16:43] A look at fully automated facilities with no manual human labor.
[20:17] Retail implications of the industrial boom and where to invest capital.
[22:44] Insights into making investments in technology businesses focused on the industrial sector.
[25:00] Where else are industrial investors currently focusing their time and money?
[28:30] Geographic variations in supply chain markets.
[29:50] How the investment professionals are investing capital given current trends in the industrial sector.
[31:04] The impact of social media and politics on industrial real estate, especially in overlooked markets.
[35:30] Will the downside of e-commerce ever catch up to them?
On this episode of The Yield, Mitch Rosen, Yieldstreet Senior Director of Real Estate sits down with Peter C. Lewis, Chairman/Founder of Wharton Equity Partners to discuss the rapidly changing landscape of industrial real estate. Because of the growing nexus of technology and real estate, companies like Peter’s are continuing with strategies of not only owning real estate but making investments in companies whose technology and products operate within that real estate.
The promise of same-day delivery from Amazon has created a need for unprecedented access to localized distribution centers in nearly every city. As Peter explains it, this demand is like taking a deck of cards, throwing it in the air, and hoping to catch the aces. Other asset classes have stuck with playing traditional cards and enjoying themselves along the way, but this level of crazy in the industrial real estate market has never been seen before.
Demand for the space continues to rise, while the supply is actually shrinking. Peter explains that, in many cities, industrial space is disappearing as buildings are getting torn down or turned into residential real estate. This makes the industrial properties that are in such high demand by companies like Amazon even more valuable and is what keeps driving industrial rent prices to all-time highs.
Change is the constant in today’s world, but what does that mean for the future of tech companies and industrial real estate? If Amazon starts delivering packages via drone, will there be less of a need for the spaces that are currently in such high demand? According to experts like Peter, that won’t be an issue for a long, long time. He walks listeners through the anticipated next-level needs of smaller companies, retail companies, and the increasing needs for B-to-B business transactions. In short, even with the potential for increased automation within the supply chain, industrial real estate will continue to play a key role in meeting consumer demands. From trying on shoes to getting your hair done or going to the movies, the need for retail spaces is not going to disappear entirely any time soon.
Where else are industrial investors focusing their time and money right now? Mitch and Peter dive into solar energy, rooftops, and other investment opportunities. Variations in the ways that goods are being distributed to consumers in a faster manner than ever before, thanks to micro industrial properties. The common theme in every transaction is simply that it has to be great real estate. Whether it’s buying up raw land or completely wrecked buildings, the successful industrial real estate transactions are the ones that are creating value.
Throughout their conversation, one thing is perfectly clear — overlooked markets are gaining attention in the industrial real estate market, and the investors who are moving quickly are the ones that are going to see the greatest gains in the years to come.
But will the downside of e-commerce ever catch up with the benefits of all they offer? With mom and pop businesses continuing to lose the battle to the Amazon and Target giants of the world, there is definitely pain in progress. To hear opinions on where this battle is headed, you won’t want to miss the final insights from Peter Lewis on today’s episode of The Yield.
Take all of our content on the go with you and listen on demand no matter where you are. Subscribe on Apple Podcasts, Spotify, YouTube, or wherever podcasts are available so you don’t miss an episode.
Sign up with Yieldstreet and be the first to know about our latest offerings, recent news, upcoming events, and more.Your email will never be shared and will only be used for Yieldstreet updates. Already a Yieldstreet member? You're already set up to be notified.
Sign up with your email address
Securely verify your identity and link a bank account
Verify your accreditation (if applicable) to access all of Yieldstreet’s offerings.
Our weekly podcast providing ideas about how to make money work for you and bring you closer to your dreams.
1 Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses.
2 Represents an average net realized internal rate of return (IRR) with respect to all matured investments in your portfolio, utilizing the effective dates and amounts to and from the investments and net of management fees and all other expenses charged to the investments. Past performance is not a reliable indicator of future results and should not be relied upon as the basis for making an investment decision. All securities involve risk and may result in significant losses, including the loss of principal invested.[read more]
3 "Annual interest" or "Annualized Return" represents an annual target rate of interest or annualized target return and "term" represents the estimated term of the investment. Such target interest or target returns and estimated term are projections of the interest or returns and or term and may ultimately not be achieved. Actual interest or returns and term may be materially different from such projections. This targeted interest or returns and estimated term are based on the underlying investments held by the applicable.
4 Reflects the annualized distribution rate that is calculated by taking the most recent quarterly distribution approved by the Fund's Board of Directors and dividing it by prior quarter-end NAV and annualizing it. The Fund’s distribution may exceed its earnings. Therefore, a portion of the Fund’s distribution may be a return of the money you originally invested and represent a return of capital to you for tax purposes.
5 Represents the sum of the interest accrued in the statement period plus the interest paid in the statement period.
6 The internal rate of return ("IRR") represents an average net realized IRR with respect to all matured investments weighted by the investment size of each individual investment, made by private investment vehicles managed by YieldStreet Management, LLC from July 1, 2015 through and including Dec 22th, 2021, after deduction of management fees and all other expenses charged to investments.
7 Investors should carefully consider the investment objectives, risks, charges and expenses of the Yieldstreet Prism Fund before investing. The prospectus for the Yieldstreet Prism Fund contains this and other information about the Fund and can be obtained by emailing [email protected] or by referring to www.yieldstreetprismfund.com. The prospectus should be read carefully before investing in the Fund. Investments in the Fund are not bank deposits (and thus not insured by the FDIC or by any other federal governmental agency) and are not guaranteed by Yieldstreet or any other party.
8 This tool is for informational purposes only. You should not construe any information provided here as investment advice or a recommendation, endorsement or solicitation to buy any securities offered on Yieldstreet. Yieldstreet is not a fiduciary by virtue of any person's use of or access to this tool. The information provided here is of a general nature and does not address the circumstances of any particular individual or entity. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of this information before making any decisions based on such information.
No communication by YieldStreet Inc. or any of its affiliates (collectively, “Yieldstreet™”), through this website or any other medium, should be construed or is intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice. Nothing on this website is intended as an offer to extend credit, an offer to purchase or sell securities or a solicitation of any securities transaction.
Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. In addition, other financial metrics and calculations shown on the website (including amounts of principal and interest repaid) have not been independently verified or audited and may differ from the actual financial metrics and calculations for any investment, which are contained in the investors’ portfolios. Any investment information contained herein has been secured from sources that Yieldstreet believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefor.
Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by Yieldstreet or any other party, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment.
Investments in private placements are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Additionally, investors may receive illiquid and/or restricted securities that may be subject to holding period requirements and/or liquidity concerns. Investments in private placements are highly illiquid and those investors who cannot hold an investment for the long term (at least 5-7 years) should not invest.
Alternative investments should only be part of your overall investment portfolio. Further, the alternative investment portion of your portfolio should include a balanced portfolio of different alternative investments.
Articles or information from third-party media outside of this domain may discuss Yieldstreet or relate to information contained herein, but Yieldstreet does not approve and is not responsible for such content. Hyperlinks to third-party sites, or reproduction of third-party articles, do not constitute an approval or endorsement by Yieldstreet of the linked or reproduced content.
Investing in securities (the "Securities") listed on Yieldstreet™ pose risks, including but not limited to credit risk, interest rate risk, and the risk of losing some or all of the money you invest. Before investing you should: (1) conduct your own investigation and analysis; (2) carefully consider the investment and all related charges, expenses, uncertainties and risks, including all uncertainties and risks described in offering materials; and (3) consult with your own investment, tax, financial and legal advisors. Such Securities are only suitable for accredited investors who understand and willing and able to accept the high risks associated with private investments.
Investing in private placements requires long-term commitments, the ability to afford to lose the entire investment, and low liquidity needs. This website provides preliminary and general information about the Securities and is intended for initial reference purposes only. It does not summarize or compile all the applicable information. This website does not constitute an offer to sell or buy any securities. No offer or sale of any Securities will occur without the delivery of confidential offering materials and related documents. This information contained herein is qualified by and subject to more detailed information in the applicable offering materials. Yieldstreet™ is not registered as a broker-dealer. Yieldstreet™ does not make any representation or warranty to any prospective investor regarding the legality of an investment in any Yieldstreet Securities.
Banking services are provided by Evolve Bank & Trust, Member FDIC.
Investment advisory services are provided by YieldStreet Management, LLC, an investment advisor registered with the Securities and Exchange Commission.
Our site uses a third party service to match browser cookies to your mailing address. We then use another company to send special offers through the mail on our behalf. Our company never receives or stores any of this information and our third parties do not provide or sell this information to any other company or service.