What an Operator Sees
I'm starting to look beyond apartments.
Nothing against multifamily. I still like apartments. But with policies continuing to attack owners who are just trying to preserve capital and earn a decent yield, it's putting me in a place where moving into industrial could make a lot of sense. I'm spending more time studying industrial and manufacturing buildings where I can buy and lease to a great business.
Industrial vacancy around Los Angeles remains strong, demand comes from a lot of users, and you can't easily create more infill industrial. Owner-users create a buyer pool that isn't focused on cap rates, and there are companies willing to sell and lease back, which is exactly what I would like to find.
I'm not pivoting away from apartments. I'm simply looking for a way to diversify away from policies in Los Angeles that are not friendly to investors.
If multifamily continues becoming harder to own, don't be surprised if more apartment owners start looking at warehouses and manufacturing buildings.
If you have industrial buildings, send OMs to David@AtlasBrief.LA.