Avistone focuses on acquiring and managing multi-tenant industrial properties nationally, a specialized asset class that offers distinct advantages over other real estate types. These advantages include:
Diverse Tenant Base
Value-Add Opportunities
Shrinking Supply
Multi-tenant industrial properties attract a broad spectrum of entrepreneurial tenants spanning various industries, drawn to flexible and affordable spaces. The diversity of tenants offers several key benefits:
We target properties where no single tenant occupies more than 20% of the space, minimizing risk exposure.
A varied tenant base reduces vulnerability to downturns in any one sector, stabilizing rental income.
With an average of one-third of leases renewing annually, we maintain steady, predictable income while adjusting to market conditions and inflationary pressures.
This broad diversity supports long-term tenant retention, enabling businesses to scale up or down within the same property as their needs evolve.
These factors provide operational stability, which is critical for sustaining revenue streams in an ever-changing market.
We actively pursue value-add opportunities in underperforming properties, focusing on properties with potential for significant improvements. By strategically reconfiguring space – particularly reducing unnecessary office areas – improving property aesthetics, and driving occupancy, Avistone enhances the property’s appeal and increases revenue. These efforts significantly improve market position and contribute to strong exit values. These often include:
Properties that feature excessive office space – sometimes up to 90% – are common, a legacy of “office creep” in buildings constructed in the 1980s. This office-heavy space has become a liability as tenants now require less office and more warehouse space.
Properties with high office build-out often have high vacancy rates and require significant capital to reconfigure the space.
Properties burdened by looming loan maturities face challenges in a conservative lending environment where loan to value’s are lower than in previous years. Where office-heavy spaces are no longer favored by lenders. Owners in these situations often seek to sell rather than invest further capital into the property.
The supply of multi-tenant industrial properties is shrinking, driven by several factors:
An increasing number of industrial properties are being repurposed for higher-value uses, further reducing available space for multi-tenant parks.
The escalating cost of land and materials has limited new development, exacerbating the supply shortage.
The surge in e-commerce and advancements in automation and logistics have spurred demand for efficient warehouse and distribution space.
As supply struggles to meet the demand, especially in high-growth markets, multi-tenant industrial properties offer compelling opportunities for experienced operators. The favorable supply-demand dynamics point to continued growth in this asset class.
Avistone’s strategic focus on multi-tenant industrial properties positions the firm and our investors to capitalize on the growing need for flexible, cost-efficient space, while leveraging value-add opportunities to enhance returns. With a proven ability to identify and reposition underperforming assets, Avistone remains well-positioned to navigate the changing landscape of industrial real estate.
