Steve Pastor talked about industrial real estate trends and transactions at some of the port facilities in the U.S. where he has listings. Pastor is Vice President of NAI James E. Hanson’s Global Supply Chain & Ports/Rail Logistics Practice, based in Teterboro, NJ.
Michael Brennan, Chairman & CEO of Brennan Investment Group, was one of the keynote presenters and asked to speak at the conference by Steve. The two have been friends for a number of years now.
Under Brennan’s direction, The Guide to Classifying Industrial Property Types was written. The only book of its kind, the guide presents a precise classification system for industrial properties and provides an in-depth review of the characteristics and evolution of the industrial property sector. The Urban Land Institute (ULI) acquired the rights to the guide and collaborated with First Industrial on a second edition, which is currently available through ULI.
In New Orleans, Brennan had more than a handful of nuggets and insights to share with his industrial audience of approximately 100 brokerage professionals. Among them:
“Hire the right people. Allocate capital. Manage the people and the capital.”
The value-add industrial expert and investor said that in 2021 his company bought $600 million of industrial real estate and sold $1.2 billion at a 30% return. Publishing results company-wide and publishing goals company-wide is what he call the “secret sauce of the value-add practitioner.”
Brennan also discussed a matrix he uses in all of his acquisitions, shortened to STPs. They are:
- Seller Circumstances
- Transaction Characteristics
- Property Attributes
By going through this exercise in every purchase deal his team looks at, it forces his company to understand seller motive, the complexities and nuances of the transaction itself, and do a deep dive on the potential acquisition to determine how his company can add value to the asset and profit from it later.
Brennan engages a group of NAI Global industrial professionals after his presentation.
Steve, with Adam Roth from NAI Hiffman in Chicago. Roth presented a session on the relationship between transportation and trucking with industrial real estate and logistics facilities.