In today’s rapidly evolving industrial real estate market, disciplined acquisition strategy is more important than ever. At Avistone, we focus on acquiring high-quality, multi-tenant industrial and flex properties that offer durable cash flow, value-add potential, and strong long-term investor outcomes. Our approach is data-driven, operationally focused, and centered on markets and assets that demonstrate both stability and upside.
Here’s a closer look at the core principles that guide our industrial acquisitions:
1. Multi-Tenant, Shallow-Bay Industrial Parks
Avistone specializes in multi-tenant shallow-bay industrial because these assets offer diversified cash flow and strong leasing velocity. Buildings typically range from 80,000 to 200,000 square feet, with 10+ tenants, each operating in suites between 2,000 and 15,000 square feet.
This asset type offers several advantages:
Industrial users in this category—distribution companies, light manufacturers, service providers, and trades—tend to value functional space, competitive rental rates, and proximity to customers.
2. Proven, High-Growth Markets
We invest in markets where industrial demand is driven by:
Current target markets include Dallas–Fort Worth, Houston, Atlanta, Cincinnati, Detroit, and Charlotte, among other high-growth regions. These markets support both stable occupancy and long-term rent growth, while offering opportunities to acquire well-located assets below replacement cost.
3. Value-Add Opportunity with Clear Pathways to Growth
Avistone targets properties where operational improvements can meaningfully enhance value. Typical opportunities include:
Our team focuses on projects with identifiable upside rather than speculative repositioning, ensuring a disciplined approach to boosting NOI and long-term asset value.
4. Below Replacement Cost Pricing
Acquiring properties at or below replacement cost is a central component of our strategy. This creates an immediate margin of safety and positions our assets competitively against new supply. Many of the parks we acquire were developed during earlier cycles when construction pricing was materially lower; matching that today is often infeasible for new developers.
This dynamic results in:
5. Strong, Diverse Tenant Mix
We look for tenant rosters that are:
Our leasing strategies emphasize tenant longevity, fair economics, and operational support to foster long-term relationships.
6. Functional, Well-Located Real Estate
We prioritize buildings that offer:
These characteristics not only drive tenant satisfaction but maintain liquidity and leasing strength throughout various market cycles.
7. Risk-Adjusted Return Discipline
Every acquisition is underwritten with a focus on:
By focusing on assets with strong fundamentals and upside through improved operations—not speculative bets—we seek to deliver stable, attractive returns to investors.
A Strategy Built on Experience and Execution
Avistone’s acquisition strategy reflects more than a decade of success operating and improving industrial parks across the country. Our hands-on asset management, disciplined underwriting, and focus on market fundamentals allow us to identify strong opportunities and create meaningful value.
As industrial demand continues to evolve, we remain committed to acquiring high-quality, functional, and strategically located assets that align with our long-term philosophy of delivering strong risk-adjusted returns and durable cash flow for our investors.