At Avistone, our expertise centers on active management and operational excellence within the industrial real estate sector, with a focus on investments in income-producing shallow bay industrial assets across the US. Ranging up to 250,000 square feet in size with large and diverse tenant bases, Avistone’s shallow bay portfolio assets feature short-term leases which allow Avistone the ability to efficiently mark-to-market new leases to drive value and hedge against inflation, and their multi-tenant layouts offer robust mitigation against both industry and tenant concentration risk.
Avistone is seeking investment opportunities to acquire shallow bay industrial assets between $5 – $30mm in high-growth markets with high market occupancy and increasing rental rates across the continental United States. Our goal is to provide investors with high-quality risk-adjusted investments within the Core Plus to Value-Add risk spectrum. Please submit any deal that matches this criteria to our Deal Team at [email protected].
Shallow bay industrial properties offer distinct advantages:
Increasing Demand & Decreasing New Supply: Demand for shallow bay space in growing markets is fueled by local and regional tenants due to the increasing availability of investment & growth These tenants seek short-term leases in flexible spaces that are offered by this asset class. Conversely, there is limited new supply as it’s cost-prohibitive to develop lower-density shallow bay product in infill locations, while supply is also decreasing as existing product is targeted for redevelopment by mixed-use operators.
Natural Hedge Against Inflation: Shallow bay assets feature shorter leases and structured rent escalations which ensure frequent rent adjustments, securing value against inflation in growing markets.
Simplified Layout & Predicable Expenses: Shallow bay industrial is typically single-story construction with homogenized multi-tenant layouts, which allows for simplified and predictable tenant improvement (small office space, paint, and flooring) and capital expenditures (roof, paint, landscaping, parking lot, and signage) costs.
Stable Returns with Mitigated Risk: Frequent lease renewals contribute to smooth income flows, while a diverse tenant mix mitigates industry and tenant concentration risks. The minimal historical losses in this sector underscore its resilience.
Industrial, Shallow Bay
$5mm – $30mm
> 50,000 square feet
Multi-tenant
Continental United States
Institutional investors seek deep industry expertise and consistent risk-adjusted returns which Avistone provides through:
Targeted Market Analysis – Identifying high-potential markets and assets primed for value enhancement.
Strategic Property Repositioning – Enhancing market appeal through on-site upgrades like fresh paint, new signage, and landscaping improvements.
Operational Improvements – Boosting net operating income through precise asset and lease management.
Asset Disposition – Executing successful exits to institutional buyers, consistently yielding positive outcomes for our investors.
Institutional investors seek deep industry expertise and consistent risk-adjusted returns which Avistone provides through:
Adaptability & Efficiency: With an agile management team and a robust local presence, we respond rapidly to market shifts, securing competitive advantages.
Proven Value-Add Strategy: Focused on assets with operational or capital deficiencies, our value-add strategy consistently unlocks asset potential.
Scale & Assemblage: Avistone’s ability to consolidate high-quality individual investments in the sub-institutional price range into a scaled institutional quality portfolio with operational efficiencies.
As a top industrial operator, Avistone brings the experience, resources, and local market knowledge needed to excel in the competitive industrial landscape, ensuring continued success for our investors and stakeholders.
