Build-to-Suit Industrial Real Estate: Mastering Tenant Capital Strategy with Joe Neckles

Build-to-Suit Industrial Real Estate: Mastering Tenant Capital Strategy with Joe Neckles Recorded live from IAMC in Little Rock, Industrial Advisors host Joe Neckles of Fortress Investment Group to discuss Fortress's single-tenant triple-net lease strategy and his focus on fully capitalizing build-to-suit projects with developers and users. Neckles explains Fortress invests via existing net-lease acquisitions, sale-leasebacks, and build-to-suits, emphasizing direct engagement with developers, tenant reps, and end users. The conversation highlights why tenants choose build-to-suit over spec space or ownership: specialized needs (manufacturing, cold storage, data centers), limited market availability, and the ability to invest capital into their core business rather than real estate. Typical build-to-suit leases target 15+ years, ideally 20+ with extension options, and can reduce tenant risk through guaranteed maximum price contracts and delivery timelines; Fortress supports power needs by funding solutions once sites are vetted. They note improving build-to-suit activity after uncertainty in 2024–2025 and tighter construction lending in 2023, with some tenants taking advantage of a softer industrial market to lock long-term rates. 0:00 Intro and Joe Neckles Background 2:10 Building Strategic Industry Partnerships 3:45 Why Choose Build to Suit Over Spec 5:15 Power Capacity and Infrastructure Challenges 6:35 Lease vs Ownership Strategy 7:55 Mitigating Risk and Project Timelines 9:15 Industrial Market Trends and Outlook