Diverse Tenant Base with Short Leases
Shorter lease terms and varied tenants create stable income and minimize rent rollover risk.
Broad Industry Representation
A diverse range of tenants limits exposure to economic downturns in any one sector.
Responsive to Market Changes
Shorter lease durations allow for faster value capture in growing markets.
Low-Cost Construction & Maintenance
Simple construction designs and universal layouts mean lower tenant improvement costs.
These qualities allow for strategic risk mitigation and create multiple avenues for value enhancement, even in volatile economic conditions.
In addition, our typical transaction size of $10 million to $25 million, while too large for individual investors, is often overlooked by institutional players. This middle-market positioning provides Avistone with a competitive edge and access to less-contested opportunities.
Multi-tenant business parks draw a diverse mix of entrepreneurial businesses across sectors. These parks are preferred for short-term leases and flexible, affordable spaces:
Frequent Lease Renewals
Leases renew often, allowing adjustments to match market and inflationary shifts.
Smooth Income Profile
With an average of one-third of leases renewing annually, income is stable and predictable.
Reduced Sector-Specific Risk
Tenant diversity minimizes exposure to fluctuations in specific industries.
This diversity supports tenant retention and operational stability, allowing tenants to expand or downsize within the same property as their business needs evolve.
Industrial, Shallow Bay
$5mm – $30mm
> 50,000 square feet
Multi-tenant
Continental United States
Avistone actively seeks value-add opportunities in undercapitalized or under-managed business parks, targeting properties with:
Deferred Maintenance or Functional Obsolescence
Capital Deficiencies and High Vacancy Rates
Poor Market Reputation or Overleveraging
After acquisition, we address these issues strategically, improving property appeal, increasing occupancy, and enhancing revenue. This hands-on approach strengthens the property’s market position and overall exit value.
A wave of conversions to higher-value uses has reduced the supply of multi-tenant business parks. Rising land prices and limited new construction have tightened supply further, while demand has grown due to:
Increased Access to Small Business Financing
Government Programs Encouraging Entrepreneurship
Private Sector Funding in Target Markets
With demand outpacing supply, multi-tenant industrial properties in growing markets provide a promising outlook for experienced operators.
Many multi-tenant business parks left unattended post-recession are still under-managed today. Avistone’s experience enables us to identify opportunities within fragmented ownership, capitalizing on properties that others may overlook. This capability positions us to unlock potential value and drive strong investment outcomes.
