Industrial Insights

Three Southern California industrial veterans — Jay Tanjuan of Scannell Properties, Sean Ward of CBRE, and host Justin Smith of Lee & Associates — sit down to break down where the Orange County industrial market actually sits in Q1 2026. Each has spent more than two decades in SoCal industrial, riding every cycle from the early 2000s through the COVID boom and the current reset. The conversation lands on a few specific takeaways. Tenants didn't leave OC — they renegotiated. Advanced manufacturing (defense, aerospace, AI, energy, robotics) is rapidly becoming the dominant demand story. Three site attributes now drive every meaningful lease: proximity to labor, power, and parking. Land values are down 60 to 70 percent from the 2022 peak, which means the underwriting math actually works for the first time in two years. And only 2.7% of OC's existing industrial inventory is 36' clear or better — making the right kind of building genuinely scarce. Plus: the port-volumes-vs-vacancy disconnect, what landlords now demand to underwrite startup credit, where institutional capital is finally returning, Scannell's 10,000-amp project in Garden Grove, and bold predictions for humanoid robots in warehouses by 2027 — or sooner.   Key Takeaways Advanced manufacturing is now the dominant OC industrial demand story. Defense, aerospace, AI, energy, and robotics tenants are signing the biggest leases in the market. Velar Atomics — a small modular nuclear reactor company with fewer than 50 employees — just leased 500,000 SF. The Three Ps drive every advanced manufacturing site decision: Labor, Power, Parking. These tenants are paying north of $2 NNN to be in the right pocket of OC or LA — and they won't compromise on any of the three. Only 2.7% of Orange County industrial inventory is 36' clear or higher. Modern-spec product is genuinely scarce, and the buildings that fit what these tenants need are getting harder to find. Land values are down 60-70% from the 2022 peak. The underwriting math actually works for the first time in two years. New development sites are coming to market weekly as other groups exit projects. The five-year renewal wave is hitting now. Tenants who signed in 2020-2022 are deciding to grow, contract, or stay flat — and that decision will shape OC absorption over the next 18 months. Power is the new constraint. Scannell's Garden Grove project delivers with 10,000 amps of power — increasingly the only spec advanced manufacturing tenants will sign for. Jay Tanjuan's call: "Now's the time to take action." Lease rates have stabilized, basis is down, the right kind of building is scarce, and capital is finally starting to lean in.   Chapters 00:41 Jay Tanjuan & Sean Ward: 20+ years in SoCal industrial 03:44 The market today vs. 12-18 months ago 04:13 Liberation Day 2025 and the slowdown  06:00 Underwriting: a flurry of new development deals 08:25 Land values down 60-70% from the 2022 peak 09:00 The dominant story: Advanced Manufacturing 09:46 Velar Atomics: 50 employees, 500,000 SF 12:17 The Three Ps — Labor, Power, Parking 13:00 Record port volumes, rising vacancy: the disconnect 16:00 The 3PL spot market and excess capacity 17:21 Right-sizing the 2020-2022 build wave 18:28 The five-year renewal wave hitting now 20:00 Only 2.7% of OC industrial is 36' clear or higher 21:54 COVID-era: rents up 5% a month 23:39 "COVID gave landlords a PhD in raising rent" 25:33 Talent, AI, and why people still want to be in OC 26:30 The capital intensity of advanced manufacturing tenants 27:22 Tracking defense contractor announcements as a leading indicator 29:15 Scannell's Garden Grove project: 10,000 amps of power 29:54 Underwriting defense contractor credit 32:54 The EV tenant deal: a year of prepaid rent 33:47 LP capital cautiousness on development 35:33 "We bottomed out" — Jay's call on OC lease rates 36:45 "Site has to have a story" — Jay's underwriting framework 40:37 Rent disparity by tenant type: $2+ NNN vs. market 42:32 Power generation creativity: modular nuclear, on-site generation 44:00 AI, robots, and the next cycle 45:10 Hot take: When does a humanoid robot show up in a warehouse?  47:30 From dots on tour-book maps to self-driving cars   Episode Resources Connect with Jay Tanjuan, CCIM — Director of Development, Southern California, Scannell Properties https://www.linkedin.com/in/jaytanjuan/ https://www.linkedin.com/company/scannell-properties/ https://scannellproperties.com/  Connect with Sean Ward — Executive Vice President, CBRE | SoCal Industrial https://www.linkedin.com/in/sean-ward-ab616a8/ https://www.linkedin.com/company/cbre/ https://www.cbre.com/  Connect with Justin Smith, SIOR - Lee & Associates Irvine https://smithcre.com/  [email protected]  https://www.linkedin.com/in/justinbsmith/  949.400.4786

Justin Smith interviews Hannah Testani of Intelligent Audit to explore how data-driven strategies and AI are transforming transportation spend management, supply chain resilience, and logistics optimization amidst global disruptions. Hannah and Justin dig into why most companies are operating as firefighters instead of engineers, what they're getting wrong without knowing it, where the parcel carrier market is headed, and why AI is already doing for supply chain what credit card fraud detection did for banking.     Key Topics Data-driven transportation optimization Impact of global disruptions on logistics AI and automation in supply chain management   Chapters 02:42 - Understanding the Role of Intelligent Audit 05:22 - Common Challenges in Supply Chain Management 08:11 - The Impact of Freight Markets on Shipping 10:57 - Navigating Carrier Relationships and Costs 13:27 - Innovative Solutions for Supply Chain Efficiency 16:15 - The Complexity of Invoicing and Data Management 21:18 - Continuous Improvement in Data Management 23:55 - The Role of AI in Logistics 27:27 - AI as a Tool for Automation 29:57 - Embracing AI in the Workplace 31:59 - Navigating Inbound vs Outbound Cargo 39:16 - Future Trends in Logistics and Automation   Episode Resources Connect with Hannah Testani https://www.linkedin.com/in/hannah-testani-4bb77715/ https://www.linkedin.com/company/intelligent-audit/ https://www.intelligentaudit.com/  Connect with Justin Smith https://smithcre.com/  [email protected]   https://www.linkedin.com/in/justinbsmith/ 

In this episode, Jim Kerrigan shares his expertise on the evolving data center industry, covering topics from supply and demand dynamics, site selection challenges, utility considerations, to future trends like AI and edge data centers.   Key Topics Data center importance and evolution Supply side challenges and moratoriums Site selection and utility considerations Impact of AI and edge computing Investment trends and market outlook   Chapters 02:42 - Supply Side Dynamics in Data Center Development 05:28 - Utility Considerations and Site Selection 08:18 - Emerging Trends: Inference and AI Data Centers 10:56 - Community Perception and Economic Impact of Data Centers 13:45 - Challenges in Data Center Development and Market Dynamics 16:23 - The Future of Data Centers and Speculative Development 21:34 - The Evolving Landscape of Farming 22:52 - Navigating Lease Contracts in Agriculture 23:25 - Understanding Data Center Lease Structures 26:27 - The Complexity of Data Center Market Dynamics 27:37 - The Role of Brokers in Data Center Transactions 29:21 - Factors Influencing Site Selection for Data Centers 31:02 - The Importance of Utility Considerations 32:02 - Power Usage Effectiveness and Its Impact 33:48 - The Demand for Data Center Capacity 34:44 - Capital Markets and Data Center Investments 37:09 - The Evolution of Data Center Valuation 38:26 - Investment Strategies in the Data Center Sector 40:09 - The Future of Data Centers and Public Perception   Episode Resources Connect with Jim Kerrigan linkedin.com/in/jimkerrigansior  https://www.linkedin.com/company/north-american-data-centers/  https://nadatacenters.com/  Connect with Justin Smith https://smithcre.com/  [email protected]  https://www.linkedin.com/in/justinbsmith/ 

In this episode, Justin Smith chats with Karl Siebrecht about the transformative approach to industrial real estate through scalable, asset-light solutions and innovative tech. Discover how Flexe is redefining warehouse utilization, market cycles, and AI-driven insights in logistics.   Key Topics The origin story of Flexe and the problem of fixed warehouse capacity How underutilized capacity can be aggregated for flexible warehousing solutions Market cycles and the impact of COVID-19 on warehousing demand The technological platform driving transparency and efficiency in logistics AI's role in optimizing scope, pricing, and operational decision-making Differences between asset-light models and traditional leasing in logistics The future of spot markets in warehousing similar to freight   Chapters 05:12 - The Evolution of Flexe and Market Insights 10:47 - Navigating Early Challenges and First Customers 15:43 - Current State of the Business and Market Dynamics 21:55 - Industrial Vacancy Rates and Market Dynamics 24:08 - Understanding Pricing Stickiness in Warehousing 25:28 - Fixed vs. Flexible Warehousing Solutions 26:32 - The Freight Market and Its Impact on Warehousing 29:04 - The Rise of Co-Working Warehouses 30:52 - The Asset-Light Model in Warehousing 32:28 - Building Trust with Operators 35:39 - Leveraging Technology for Quality Assurance 38:52 - AI's Role in Enhancing Operational Efficiency   Episode Resources Connect with Karl Siebrecht https://www.linkedin.com/in/karl-siebrecht-81188212/  https://www.linkedin.com/company/flexe/  https://flexe.com/  Connect with Justin Smith https://smithcre.com/  [email protected]  https://www.linkedin.com/in/justinbsmith/ 

In this episode, Rosemary Coates of the Reshoring Institute discusses the current landscape of manufacturing, reshoring trends, supply chain risks, and the impact of automation and geopolitics on global production strategies.   Key Topics Reshoring trends and statistics Impact of tariffs and international trade policies Role of automation and AI in manufacturing Supply chain risks and international dependencies Chapters 01:02 Current Trends in Reshoring and Manufacturing 02:13 Tariffs, Risks, and Investment Delays 02:49 Why Companies Reshore: Risk Mitigation and Economics 04:28 The Myth of Patriotic Reshoring 05:07 Research and Resources from the Reshoring Institute 06:07 Manufacturing Shifts in Automotive and Mexico 08:17 Mexico's Competitive Edge: Cost and Proximity 10:17 Border Logistics and Technology in Cross-Border Trade 12:46 Mexico's Industrial Development and Infrastructure 14:05 Challenges and Opportunities in US Manufacturing 15:04 Automation, AI, and the Future of Manufacturing 18:34 Skilled Jobs and the Shift in Manufacturing Workforce 20:00 Power Infrastructure and Bottlenecks 21:32 Impact of AI and Data Centers on Manufacturing 22:59 Modern Skills for Manufacturing and Defense Industry 24:02 Defense Manufacturing and Global Supply Chains 25:43 Semiconductors, Rare Earths, and Critical Materials 27:22 Risks and Complexities of Leaving China 31:06 Risks and Challenges of Moving Out of China 32:29 Managing the Transition Out of China 34:46 Intellectual Property and Supply Chain Security 36:49 Cost and Planning for Reshoring Projects 37:44 Project Management and Site Selection   Episode Resources Connect with Rosemary Coates https://www.linkedin.com/in/rosemarycoates/ https://reshoringinstitute.org Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith/

In this episode of the Industrial Insights podcast, Justin Smith interviews Nick Biondolillo of Cameo Consulting, a supply chain consultant with extensive experience in various sectors. They discuss Nick's journey through the supply chain industry, the importance of hands-on experience, and the transformative role of AI in supply chain operations. The conversation also covers market trends, the significance of on-site assessments, and the challenges of navigating freight dynamics. Nick emphasizes the need for consultants to bridge the gap between technical analysis and business impact, providing valuable insights for professionals in the field.   Key Takeaways Nick Biondolillo shares his journey in supply chain consulting. The importance of hands-on experience in understanding supply chain issues. AI is transforming the way supply chains operate and analyze data. Consultants must bridge the gap between technical analysis and business impact. Market trends indicate a potential tightening in freight pricing. Understanding consumer expectations is crucial for supply chain decisions. On-site assessments provide invaluable insights into operational challenges. Effective communication is key in supply chain management. Rationalizing warehouse locations can have significant financial implications. The future of supply chain will be influenced by technology and market dynamics.   Chapters 01:36 Nick's Journey Through Supply Chain 10:08 Bridging the Gap: Consulting and Implementation 16:44 The Impact of AI on Supply Chain 20:19 Exploring Revenue Management and Optimization 22:03 Optimizing Freight and Margins 23:45 Understanding Contribution Margins 25:19 Tools for 3PLs and Network Design 27:11 Warehouse Rationalization Challenges 30:30 Consumer Expectations and Service Levels 32:17 Consulting Assessments and Client Engagement 36:30 Market Trends and Future Predictions 43:39 Freight Rejections and Market Dynamics   Episode Resources Connect with Nick Biondolillo https://www.linkedin.com/in/nick-biondolillo/ https://www.cameoconsulting.net/ https://www.linkedin.com/company/cameoconsulting/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justi  

In this episode of the Industrial Insights podcast, Justin Smith and Casey Winans discuss the current state of the WMS and 3PL market, the challenges faced by logistics companies, and the importance of readiness in implementing warehouse management systems. Casey shares his journey from software engineering to consulting, highlighting the need for effective systems and processes in scaling operations. The conversation also touches on market trends, technology's role in logistics, and the future of the industry, emphasizing the importance of adaptability and continuous improvement.   Key Takeaways The logistics market is transitioning from survival to thriving post-peak. Scaling a 3PL requires effective systems and processes. Many companies struggle with the transition from manual to automated operations. Understanding client readiness is crucial for successful WMS implementation. The mid-market presents unique challenges and opportunities in logistics. Consulting firms often focus on hourly rates, which may not align with client needs. Technology is rapidly evolving, impacting the 3PL landscape. AI has the potential to enhance operational efficiency in logistics. Market consolidation is expected as companies seek to improve margins. Continuous improvement is essential for long-term success in logistics.   Chapters 00:30 - Current Market Trends in 3PL and WMS 03:10 - Casey Winans' Journey in Logistics 11:26 - Challenges Faced by Smaller 3PLs 19:28 - The Role of AI in Logistics 26:59 - Future Trends in 3PL and WMS   Episode Resources Connect with Casey Winans https://www.linkedin.com/in/cwinans/ https://www.linkedin.com/company/gofullstride/ https://www.gofullstride.com/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justi

In this episode of the Industrial Insights podcast, Justin Smith interviews Chris O'Brien from Auctane, exploring the evolution of shipping and logistics technology. They discuss Auctane's role in the industry, Chris's journey in supply chain, and the importance of leveraging multi-carrier strategies for profit recovery. The conversation also touches on the significance of customer experience in returns, the impact of tariffs on international shipping, and the growing role of 3PLs in modern logistics. Chris shares insights on innovations in warehouse management and sales strategies in the logistics sector, as well as future trends and upcoming conferences.   Key Takeaways Auctane operates at the intersection of shipping software and customer delivery experience. Chris O'Brien's background in supply chain began at CH Robinson, where he learned the logistics industry. The shipping industry has evolved with technology, providing better visibility and decision-making tools. Profit recovery in shipping is crucial for maximizing value and minimizing costs. Leveraging multiple carriers can enhance delivery efficiency and reduce costs. Returns have become a critical aspect of customer experience in e-commerce. Technological integration is transforming logistics and enabling new possibilities. Tariffs have forced companies to rethink their sourcing strategies and supply chains. 3PLs are increasingly relied upon for efficient logistics management. Sales strategies in logistics focus on understanding customer needs and providing tailored solutions.   Chapters 02:27 - Chris O'Brien's Journey in Supply Chain 05:27 - The Evolution of Supply Chain Visibility 08:03 - Profit Recovery in Shipping 10:38 - Leveraging Multi-Carrier Strategies 13:07 - The Impact of Technology on Delivery Speed 15:54 - Returns Management in E-commerce 18:30 - Future Trends in Logistics and Delivery 19:34 - Navigating Tariffs and Supply Chain Challenges 26:01 - The Role of 3PLs in Modern Logistics 30:08 - Innovations in Technology and Integration 32:58 - Sales Strategies in the Logistics Sector 37:00 - Future Trends in Software and Logistics M&A 39:22 - Looking Ahead: Conferences and Industry Innovations   Episode Resources Connect with Chris O'Brien https://www.linkedin.com/in/obrienchrispro/ https://www.shipstation.com/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justi

In this episode of the Industrial Insights podcast, Justin Smith interviews Brandon Sedloff, Chief Real Estate Officer at Juniper Square and host of The Distribution podcast. They discuss Brandon's journey in the real estate industry, the evolution of his podcast, and the importance of storytelling and relationships in business. Brandon shares insights on navigating changes in private markets, the role of technology and AI, and the significance of building trust with clients. They also explore the future of real estate and capital flows, emphasizing the need for adaptability and embracing new technologies.   Key Takeaways Brandon Sedloff emphasizes the importance of trust and education in private markets. Storytelling is crucial for understanding the people behind businesses. The evolution of The Distribution podcast reflects the changing landscape of private markets. Listening to clients is key to understanding market needs and driving product development. Technology is essential for modern real estate operations and decision-making. Building relationships is fundamental to success in the industry. The future of real estate will be shaped by global capital flows and changing investor needs. AI and technology will transform knowledge work in the industry. Embracing change can lead to new opportunities and growth. The power of relationships remains a constant in an ever-evolving market.   Chapters 02:59 - The Journey of Podcasting and Learning from Guests 05:34 - The Importance of Storytelling in Business 08:32 - Podcast Formats and Inspirations 11:42 - Navigating Changes in the Real Estate Market 14:25 - Role of Chief Real Estate Officer at Juniper Square 17:10 - Building Trust and Relationships in Business 20:14 - Listening and Understanding Client Needs 22:58 - Curating Content and Events for Engagement 25:38 - Building Products with Customer Insights 28:44 - The Importance of Saying No 29:41 - Understanding Market Trends 33:22 - Operational Alpha in Real Estate 36:30 - Embracing Technology and AI 41:13 - Looking Ahead to 2026   Episode Resources Connect with Brandon Sedloff https://www.linkedin.com/in/bsedloff/ https://www.linkedin.com/company/juniper-square/ https://www.junipersquare.com/learn-more Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justi

In this episode of the Industrial Insights Podcast, Justin Smith interviews Kevin Natale from SKULabs, discussing the critical role of Warehouse Management Systems (WMS) in e-commerce and logistics. They explore the customer journey from small-scale operations to larger warehouses, the importance of inventory management, and the impact of technology and AI on operational efficiency. The conversation also touches on the challenges of transitioning between systems and the significance of marketing and brand building in the e-commerce space.   Key Takeaways WMS is essential for managing inventory and operations in e-commerce. The customer journey varies from small startups to established businesses. Operational efficiency can significantly reduce labor costs. Standardization in processes leads to improved fulfillment. Technology plays a crucial role in optimizing warehouse operations. Transitioning between systems requires careful planning to avoid disruptions. Insights from implementation can reveal inefficiencies in existing processes. AI is set to revolutionize warehousing and fulfillment operations. Marketing and brand building are vital for e-commerce success. Understanding inventory management is key to reducing holding costs.   Chapters 00:00 Introduction to Warehouse Management Systems 02:40 The Customer Journey in Warehouse Management 05:13 Understanding Inventory Management and SKUs 07:58 Operational Efficiency and Continuous Improvement 10:46 The Role of Technology in Warehouse Operations 13:45 Navigating the Challenges of Transitioning Systems 15:59 Insights from Implementation and Optimization 18:36 The Future of AI in Warehouse Management 21:07 Marketing and Brand Building in Warehousing   Episode Resources Connect with Kevin Natale https://www.linkedin.com/in/knatale2020/ https://www.linkedin.com/company/skulabs/ https://www.skulabs.com/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

In this episode, Justin Smith interviews Bart Gadeyne from Optioryx about the integration of AI into warehouse management systems (WMS). They discuss the challenges faced by warehouses, such as inefficiencies in picking routes and shipping air, and how AI can optimize these processes. Bart explains the importance of smart 3D cartonization, mobile dimensioning, and the need for effective change management in implementing new technologies. The conversation also touches on the unique challenges faced by third-party logistics (3PL) providers and the future trends in warehouse technology, including robotics and automation.     Key Takeaways AI can significantly optimize warehouse operations. Shipping air is a costly inefficiency in logistics. Smart 3D cartonization can reduce shipping costs. Mobile dimensioning technology is revolutionizing the industry. Warehouse layout impacts picking productivity. 3PLs must adapt to diverse client needs. Change management is crucial for technology adoption. Implementation timelines can be hindered by IT departments. Robotics are emerging but require clear ROI. The future of warehousing will blend technology and human labor.   Chapters 02:53 Optimizing Warehouse Operations with AI 05:30 The Complexity of Truck Loading and Shipping Air 08:28 Smart 3D Cartonization and Dimensional Shipping 11:12 Mobile Dimensioning and Its Impact 13:56 Warehouse Layout and Design Optimization 16:52 3PL Challenges and Solutions 19:37 Change Management in Warehouse Operations 22:29 Implementation of AI Solutions 25:20 Future Trends in Warehouse Technology   Episode Resources Connect with Bart Gadeyne https://www.linkedin.com/in/bartgadeyne/ https://www.linkedin.com/company/optioryx/ optioryx.com Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

In this episode of the Industrial Insights podcast, Justin Smith interviews Vee Srithayakumar from Tecsys, discussing the evolution of warehouse management systems (WMS) and the impact of software development on the logistics industry. Vee shares his journey from warehouse management to product management, emphasizing the importance of communication and user experience in software design. The conversation explores the transition to SaaS, the significance of AI in warehouse operations, and the collaborative nature of the healthcare and 3PL industries. Vee also addresses implementation challenges and the need for flexibility in software solutions, while highlighting the future of WMS and AI integration.   Key Takeaways Vee transitioned from warehouse management to software development by leveraging his network. Product management involves bridging the gap between warehouse operations and software development. Effective communication is crucial in product management to ensure accurate software development. User experience should be prioritized in software design for warehouse management systems. The shift to SaaS has improved feedback cycles for WMS significantly. Greenfield projects allow for innovative warehouse designs without existing constraints. Warehouse managers today must be tech-savvy to utilize modern tools effectively. Implementation processes need to be streamlined to avoid delays and complications. Collaboration in the healthcare industry fosters sharing of best practices among competitors. Integrating with specialized startups can enhance WMS capabilities without reinventing the wheel.     Chapters 03:00 - Transitioning from Warehouse Management to Software Development 05:53 - The Role of Product Management in Software Development 09:11 - The Evolution of SaaS in Warehouse Management Systems 11:58 - Understanding Greenfield vs. Brownfield Projects 14:50 - The Impact of AI on Warehouse Management 18:02 - Maturity Stages of Organizations Seeking WMS Solutions 20:31 - Collaboration in the Industry 21:09 - Understanding 3PL Operations 23:14 - Flexible Feature Development 24:47 - Streamlining Implementation Processes 25:20 - Addressing Customer Expectations 27:35 - Leveraging Integrations for Specialized Needs 28:03 - Navigating the Ecosystem of WMS 29:56 - Innovative Solutions for Complex Problems 32:09 - Expanding Product Offerings 34:39 - The Role of AI in Execution 36:43 - The Future of Software Development   Episode Resources Connect with Vee Srithayakumar linkedin.com/in/vsrithayakumar https://www.linkedin.com/company/tecsys-inc/ https://www.tecsys.com/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

In this episode of the Industrial Insights podcast, Justin Smith interviews Scott Weiss, VP of Technical Sales at Maersk, discussing the evolving landscape of the 3PL industry, the impact of COVID-19 on supply chains, and the importance of understanding global supply chain dynamics. Scott shares insights on the value of a great 3PL provider, the significance of IT in modern warehousing, and the challenges of labor markets. The conversation also touches on the decision-making process between insourcing and outsourcing, the role of automation in warehouses, and future trends in the industry.     Key Takeaways Real estate rates only go up over time. Companies must consider the entire global supply chain. A great 3PL adds value beyond order fulfillment. Not every 3PL partnership is a good fit. The 3PL landscape has changed significantly over the years. IT integration is crucial for modern warehousing. There is no one-size-fits-all model for warehousing solutions. Warehouse automation is a growing trend but must be tailored to customer needs. Labor market challenges are significant in the warehousing industry. Continuous improvement is essential for 3PL success.     Chapters 01:45 - Post-COVID Supply Chain Adjustments 03:44 - Understanding Global Supply Chain Dynamics 05:12 - The Importance of Real Estate in Logistics 06:42 - Maersk's Unique Position in the Market 09:05 - Best Practices in 3PL Relationships 11:53 - Identifying the Right Fit for 3PL Partnerships 13:34 - Implementation Challenges in 3PL  16:17 - Evolution of the 3PL Landscape 19:07 - The Role of IT in Modern Logistics 22:07 - Insource vs. Outsource: Finding the Right Balance 23:20 - Exploring Outsourcing Models 25:57 - Warehouse Automation Adventures 32:40 - Labor Market Dynamics 40:07 - Future Trends in Warehousing     Episode Resources Connect with Scott Weiss https://www.linkedin.com/in/scottweisslogistics/ https://www.maersk.com/ https://www.linkedin.com/company/maersk-group/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

In this conversation, Justin Smith and Mohammad Nafisi discuss the evolving landscape of autonomy in logistics, focusing on the importance of pilot programs, the challenges of implementing automation, and the future of robotics in warehousing. They explore how flexibility and adaptability are crucial for success in this field, and the need for businesses to mature their processes before fully embracing automation. The discussion highlights the significance of meeting basic operational metrics and the role of customer success in the deployment of autonomous solutions.   Key Takeaways Autonomy should be considered a last resort after exploring other efficiencies. Pilot programs are essential for demonstrating capabilities to customers. Meeting basic operational metrics is crucial for success in automation. Flexibility in automation solutions allows for adaptation to changing workflows. Logistics is inherently complex, requiring tailored solutions for different scenarios. The transition from zero to one in automation presents unique challenges. Robotics technology is rapidly evolving, enabling more effective solutions. Customer success is tied to the long-term viability of automation solutions. Integration with existing systems can be a significant hurdle in automation. The future of robotics in warehousing looks promising with advancements in technology.   Chapters 03:01 -  Understanding Pilot Programs 06:01 -  The Evolution of Forklift Design 09:14 - Transitioning from Zero to One in Automation 12:01 - The Role of Flexibility in Autonomous Solutions 15:09 - Advancements in Navigation Technology 18:00 - The Future of Forklift Automation and Business Models 19:13 - Overcoming Technical Challenges 26:45 - The Future of Robotics in Warehousing   Episode Resources Connect with Mohammad Nafisi https://www.linkedin.com/in/mohammadnnafisi/ https://www.linkedin.com/company/cavallainc/ https://cavalla.io/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

In this episode of the Industrial Insights podcast, Justin Smith interviews Nikhil Sathe from BGSA, discussing the current state of the supply chain and logistics industry. They explore the economic landscape, the impact of tariffs, the role of technology and AI, and the trends in mergers and acquisitions. Nikhil shares insights on navigating financial challenges, the importance of cash management, and the future outlook for the industry, emphasizing the need for realistic expectations in a changing market.   Key Takeaways Nikhil Sathe has over 35 years of experience in supply chain and logistics. The freight industry is currently experiencing a recession with significant challenges. Transportation technology and AI are the only sectors thriving in the current market. M&A activity is expected to rebound in 2026 despite current market conditions. Cash management is crucial for companies facing financial pressures. Identifying high-value customers is essential for profitability. AI is poised to revolutionize the logistics industry. Valuations in the market are adjusting to new economic realities. The impact of tariffs is creating uncertainty in supply chains. The logistics market is highly fragmented, presenting both challenges and opportunities.     Episode Resources Connect with Nikhil Sathe linkedin.com/in/nikhilsathe https://bgstrategicadvisors.com/ https://www.linkedin.com/company/bg-strategic-advisors/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

In this episode of the Industrial Insights podcast, Justin Smith and Tim Judge discuss the critical need for data unification in supply chains. Tim shares his extensive background in the industry, highlighting the challenges companies face with fragmented data systems. He explains how Agillitics aims to bridge these gaps by providing tailored solutions that meet companies where they are in their data maturity journey. The conversation also touches on the importance of automation, AI, and the need for open systems to enhance visibility and efficiency in warehouse operations. Tim emphasizes the significance of preparing for go-live challenges and the dual nature of AI as both overhyped and underhyped in the current landscape.   Key Takeaways Unified data is essential for effective supply chain management. Many companies struggle with fragmented data across multiple systems. AI and technology can significantly enhance supply chain operations. Agillitics aims to provide tailored solutions for data integration. Middle market companies have unique challenges and opportunities. Empowering employees through automation can lead to greater job satisfaction. Visibility in warehouse operations is crucial for efficiency. Digital transformation requires careful planning and execution. Go-live challenges can be mitigated through simulation and preparation. Understanding the maturity level of a company is key to implementing solutions. The future of supply chain will increasingly rely on data-driven decision making.     Chapters 01:58 - Tim Judge's Career Journey and Insights 05:46 - The Importance of Data in Supply Chain Management 09:23 - Building Effective Dashboards for Executives 11:18 - Understanding Customer Readiness for Data Solutions 13:11 - Productizing Data Solutions for Faster Implementation 15:01 - Leveraging AI in Data Management 16:57 - Challenges for Mid-Sized Companies in Data Management 18:58 - Empowering Teams to Embrace Automation 23:32 - Embracing Entrepreneurial Mindset in Organizations 25:40 - Transforming Warehouse Operations through Automation 29:13 - Integrating Data Systems for Enhanced Visibility 33:16 - Navigating Digital Transformations and Go-Live Challenges 38:14 - The Dual Nature of AI: Overhyped and Underhyped 42:48 - Preparing for Future Challenges in Supply Chain Management   Episode Resources Connect with Tim Judge https://www.linkedin.com/in/timpjudge/ https://www.linkedin.com/company/agillitics/ https://www.agillitics.com/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith  

In this episode of the Industrial Insights podcast, Justin Smith interviews Adrian Betts from Xpandur, who shares his expertise in optimizing warehouse operations. The conversation covers various themes, including managing large teams, simplifying operations through repetition, the importance of training, and understanding client needs. Adrian discusses the challenges of hiring and retaining talent in competitive markets, the significance of cross-training, and the necessity of planning for peak seasons. He emphasizes capacity management and inventory control while also addressing the balance between automation and traditional methods in warehousing. The episode concludes with insights into future trends in the industry.   Key Takeaways Xpandur aims to enhance operational capabilities in warehousing. Managing large teams requires effective communication and structure. Repetition in training simplifies complex operations. Understanding client needs is crucial for successful project execution. Hiring strategies must adapt to market dynamics. Retaining talent is essential in competitive job markets. Cross-training enhances operational flexibility and efficiency. Planning for peak seasons is vital for operational success. Capacity management directly impacts inventory control and efficiency. Automation should complement traditional methods, not replace them.   Episode Resources Connect with Adrian Betts https://www.linkedin.com/in/adrian-betts/ https://www.linkedin.com/company/xpandur-llc/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

In this conversation, Keyan Bazargan discusses the importance of focusing on last mile shipping as a strategic area for brands to reduce costs and improve efficiency. He emphasizes that this area offers significant opportunities for savings without causing major disruptions to the supply chain. By prioritizing last mile shipping, brands can achieve a high return on investment and effectively cut their cost of goods sold.   Takeaways There's a lot of different areas I could have chosen to focus on to help companies save money. The reason why I focused on last mile shipping is because I think the majority of brands there have a lot of meat left on the bone. There's a lot of room to save and to actually make a change is not as disruptive to your supply chain. I viewed it as the category like the highest ROI use of your time. If a brand is looking to cut their cost of goods sold, I recommend starting with shipping. Manufacturing changes that you might make are a lot bigger of a project than modifying your last mile shipping. Last mile shipping offers significant opportunities for savings. Strategic focus on last mile shipping can lead to operational efficiency. Cutting costs in last mile shipping can enhance overall brand performance. Effective shipping strategies are crucial for modern brands.   Episode Resources Connect with Keyan Bazargan https://www.linkedin.com/in/keyan-bazargan/ https://www.linkedin.com/company/iron-margin/ https://www.ironmargin.com/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

In this episode of the Industrial Insights podcast, Justin Smith interviews Paul Lukehart, an experienced project manager in logistics and supply chain. They discuss Paul's journey from the Army to managing projects for major companies like Target and Amazon. The conversation delves into the importance of effective project management, common pitfalls, risk mitigation strategies, and the impact of automation in logistics. Paul shares insights on the insourcing vs outsourcing dilemma, the significance of understanding payback periods, and how to deal with unexpected challenges in projects. The episode concludes with a look at future trends in project management, including the role of AI and prediction markets.     Takeaways Project management is a journey that requires trust and collaboration. Effective project management involves understanding both operations and project execution. Automation is becoming increasingly important in logistics projects. Common pitfalls in project management include misalignment of resources and scope. Risk mitigation strategies are essential for project success. Understanding payback periods helps in making informed investment decisions. The insourcing vs outsourcing dilemma is a continuous challenge for companies. Dealing with project wrinkles requires transparency and stakeholder engagement. Future trends in project management include the integration of AI and prediction markets. Continuous learning and adaptation are key to successful project management.     Chapters 00:00 - Introduction to Project Management and Logistics 02:41 - Paul's Journey in Logistics and Project Management 05:10 - The Importance of Project Definition and Scope 07:40 - Understanding Project Management Risks 10:24 - When to Seek External Project Management Expertise 13:03 - Case Study: Trucking Automation Project 15:16 - Common Pitfalls in Project Management 20:24 - Understanding Project Value and Risks 23:01 - Contingency Planning and ROI Analysis 25:41 - The Dynamics of 3PL Relationships 27:19 - Navigating Project Challenges and Wrinkles 29:52  - Innovative Tools and Technologies in Project Management 33:06 - Looking Ahead: Future Trends and Insights     Episode Resources Connect with Paul Lukehart https://www.linkedin.com/in/paullukehart/ https://www.linkedin.com/company/plprograms/ https://warehouseimprovement.com/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith  

In this episode of the Industrial Insights podcast, Justin Smith interviews Joe Dunlap, founder of BlueJ Advisors, to explore the evolving landscape of supply chain and industrial strategy. They discuss the concept of warehouses as infrastructure, the importance of automation, and the role of real estate in supply chain dynamics. Joe shares insights from his extensive career in supply chain consulting, including turnaround strategies for distressed companies and the growing significance of 3PLs. The conversation emphasizes the need for continuous learning and adaptation in a rapidly changing industry.   Key Takeaways Warehouses are increasingly viewed as infrastructure. Real estate plays a crucial role in supply chain dynamics. Automation is essential for improving efficiency and reducing costs. Turnaround strategies are vital for distressed companies. M&A activities often require realignment of supply chain assets. Supply chain network design requires accurate data and modeling. 3PLs are growing in importance within the supply chain. Automation can lead to higher-skilled job opportunities. Cultural perceptions influence outsourcing decisions. Continuous learning is key to staying relevant in supply chain management.   Chapters 00:00 -  Introduction to Supply Chain and Industrial Strategy 01:10  - Warehouses as Infrastructure 05:51 - Joe Dunlap's Background and Expertise 13:07 - Current Trends in Supply Chain Consulting 15:14 - Challenges in Turnarounds and Transformations 20:05 - Business Imperatives and Supply Chain Changes 21:06 - Tools and Analysis in Supply Chain Network Design 25:08 - The Role of 3PLs in Supply Chain Management 30:51 - Understanding Supply Chain Components 32:18 - The Role of Automation in Supply Chain 39:07 - Outsourcing vs. Insourcing Decisions 41:52 - The Future of Manufacturing and Automation 47:46 - The Value of Continuous Learning and Education   Episode Resources Connect with Joe Dunlap https://www.linkedin.com/in/joe-dunlap-bluej https://www.linkedin.com/company/bluejadvisors/ https://bluejadvisors.com/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

In this episode of the Industrial Insights podcast, Justin Smith interviews Hillary Drake from Liminal Network about the modernization of logistics through APIs and self-service solutions. They discuss the challenges faced by B2B companies in managing customer expectations, the importance of customer journey mapping, and how integrating technology can enhance the customer experience. Hillary shares insights on the role of data security, the entrepreneurial journey, and future innovations in the logistics industry.   Key Takeaways The logistics industry is evolving with the integration of APIs. Self-service solutions are crucial for improving customer experience in B2B. Understanding the customer journey can reveal gaps in service. Integrating new technology into existing systems is essential for efficiency. Real-time data enhances customer trust and satisfaction. APIs can streamline logistics processes and reduce costs. Data security is a top priority for maintaining customer trust. Future innovations in logistics will focus on automation and efficiency. Building relationships in the industry is key to success. The entrepreneurial journey involves navigating challenges and seizing opportunities.   Chapters 00:00 - Introduction to Modernizing Logistics 02:37 - The Importance of Self-Service in B2B 05:44 - Identifying Target Customers 08:07 - Understanding Customer Journey Mapping 11:07 - Integrating Technology into Existing Systems 13:58 - Enhancing Customer Experience with Real-Time Data 16:33 - The Role of APIs in Logistics 19:24 - Challenges in Implementing New Technologies 22:12 - Data Security and Customer Trust 25:07 - Future Innovations in Logistics 27:29 - Building Relationships in the Industry 30:27 - The Entrepreneurial Journey 33:15 - Conclusion and Future Outlook   Episode Resources Connect with Hillary Drake https://www.linkedin.com/in/hillary-drake/ https://www.linkedin.com/company/liminal-network/ https://liminalnetwork.com/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

In this episode of the Industrial Insights Podcast, Justin Smith interviews Jonathan Briggs from ShipMonk, exploring the intersection of industrial real estate and third-party logistics (3PL). They discuss Jonathan's role at ShipMonk, the challenges and strategies in sales, the importance of understanding customer needs, and the impact of technology and automation in warehousing. The conversation also delves into managing peak seasons, regulatory challenges, and common myths in the 3PL industry, concluding with insights on future trends and investment opportunities.     Key Takeaways Sales is evolving, and understanding customer needs is crucial. Navigating customer relationships requires a balance of push and pull. The ideal customer profile has shifted towards D2C and omni-channel. Technology and automation are key to optimizing warehouse operations. Labor dynamics and automation present ongoing challenges. Sales cycles have lengthened due to market uncertainties. Managing peak seasons requires proactive planning and communication. Regulatory changes can significantly impact logistics operations. Common myths about 3PLs often stem from outdated perceptions. Investing in global facilities can enhance service capabilities.     Chapters 00:00 - Introduction to ShipMonk and Jonathan's Role 02:42 - A Day in the Life at ShipMonk 05:29 - Navigating the 3PL Landscape 08:21 - Understanding ShipMonk's Ideal Customer Profile 11:09 - Warehouse Automation Challenges 13:57 - The Balance of Automation and Manual Processes 16:54 - Sales Environment and Challenges in 2025 19:51 - Success Stories and Future Focus 26:16 - Streamlining Operations and Value-Added Services 29:16 - Navigating Peak Seasons and Managing Expectations 32:42 - Understanding Regulatory Risks and Compliance 35:47 - Contract Lengths and Customer Retention Strategies 38:32 -  Vertical Integration and Scaling the Business 41:30 -  Dispelling Myths in Fulfillment and Outsourcing 47:41 -  Future Investments and Global Expansion Strategies     Episode Resources Connect with Jonathan Briggs https://www.linkedin.com/in/jdbriggs/ https://www.shipmonk.com/high-volume-fulfillment https://www.linkedin.com/company/shipmonk/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

In this episode of the Industrial Insights podcast, Justin Smith interviews Luca Conner, co-founder and co-CEO of Pack'N, a 3PL company. They discuss Luca's journey from starting in the industry at a young age to bootstrapping a successful logistics business. The conversation covers the importance of communication, client relationships, financial realities, and the challenges of running a 3PL. Luca shares insights on preparing for peak seasons, identifying ideal clients, and the future of the 3PL industry amidst changing e-commerce trends.   Key Takeaways Luca started Pack'N at 19 years old, bootstrapping the business. The company has a 100% client retention rate, emphasizing strong relationships. Effective communication is crucial for successful 3PL operations. Cash flow management is a significant challenge for 3PLs. Client expectations must be clearly set and managed. Organized inbounding is essential for smooth warehouse operations. E-commerce trends are shifting, impacting logistics strategies. Preparing for peak seasons requires strategic planning and communication. The future of the 3PL industry is promising, with expected growth. 3PLs should focus on building partnerships rather than transactional relationships.   Chapters 00:00 - Introduction to Packin and Luca's Journey 04:33 - Bootstrapping a 3PL: Challenges and Strategies 09:13 - The Importance of Communication in 3PL 14:00 - Financial Realities of Running a 3PL 18:45 - Client Relationships: Dream vs. Nightmare 23:30 - Navigating Volatility in E-commerce 27:48 - Preparing for Q4: The Super Bowl of Logistics 32:06 - The Future of 3PL: Growth and Strategic Partnerships   Episode Resources Connect with Luca Conner https://www.linkedin.com/in/luca-conner-96139a253/ https://www.linkedin.com/company/packn/ https://www.gopackn.com/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

In this episode of the Industrial Insights podcast, Dr. Noel Hacegaba, COO of the Port of Long Beach, discusses the critical role of the port in the Southern California economy, its operations, and future developments. The conversation covers misconceptions about port ownership, the economic impact of the port, the importance of rail infrastructure, the effects of tariffs, technological advancements, sustainability initiatives, and workforce development. Dr. Hacegaba emphasizes the need for collaboration and innovation to meet future challenges in the supply chain and logistics industry.   Key Takeaways The Port of Long Beach is a significant economic engine, handling 40% of U.S. imports. Ports are often invisible until supply chain disruptions occur, as seen during the pandemic. The port is investing heavily in rail infrastructure to improve efficiency. Tariffs create uncertainty but are expected to stabilize in the long term. Technological advancements are crucial for improving port operations and efficiency. Sustainability initiatives are a priority, with a focus on zero emissions. Automation is present but not fully implemented at all terminals. Workforce development is essential for the future of the port and logistics industry. Collaboration between ports can enhance operational efficiency. The supply chain information highway improves visibility and data sharing among partners.   Chapters 00:00 - Introduction to the Port of Long Beach 02:45 - Understanding Port Operations and Ownership 05:36 - Economic Impact of the Port 08:20 - Container Volume and Economic Indicators 10:51 - Rail Infrastructure and Future Investments 13:49 - Technological Advancements in Port Operations 16:42 - Transition to Zero Emissions 19:12 - Workforce Development and Future Leaders 22:18 - Automation in Port Operations 24:49 - Global Port Comparisons 27:32 - Long-term Trends and Future Outlook     Episode Resources Connect with Dr. Hacegaba https://www.linkedin.com/in/dr-noel-hacegaba-60b7894/ https://www.linkedin.com/company/port-of-long-beach/ https://polb.com/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

In this episode of the Industrial Insights podcast, Justin Smith interviews Ryan Robinson from American Eagle Solutions (AES). They discuss the evolution of AES from a lighting company to a full electrical services contractor, focusing on the growing demand for electrical infrastructure in industrial warehousing. Key topics include the state of lighting, the lifespan of LEDs, the importance of collaboration in space planning, and the role of landlords and operators in electrical planning. They also explore rules of thumb for lighting and electrical needs, case studies involving 3PLs, and future trends in electrical infrastructure.   Key Takeaways AES started as a lighting company and evolved into a full electrical services contractor. The demand for electrical infrastructure is growing rapidly, especially in industrial spaces. LEDs have a lifespan that can lead to significant maintenance needs after 5-10 years. Collaboration between landlords, operators, and electrical contractors is crucial for effective space planning. Understanding the timeline for electrical installations is essential to avoid operational delays. Not all LED fixtures are created equal; quality varies significantly. Rules of thumb for lighting density can help in budgeting and planning. The role of 3PLs in the industry is expanding, necessitating quick electrical setups. Future trends include a focus on heavy electrical equipment and automation. Proactive planning can prevent costly delays in electrical installations.   Chapters 00:00 - Introduction to Ryan Robinson and AES  04:47 - The State of Lighting Technology 09:10 - Understanding Electrical Infrastructure Needs  17:55 - Collaboration with Landlords and Operators  22:49 - Growing Demand for Electrical Services  29:32 - The Future of Electrical Infrastructure  34:47 - Vertical Integration in Electrical Services   Episode Resources Connect with Ryan Robinson https://www.linkedin.com/in/ryan-robinson-0a63aa35/ https://www.linkedin.com/company/americaneaglesolutionsltd/ https://www.aes-ltd.net/about/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith  

In this episode of the Industrial Insights podcast, Justin Smith and Jesse Gundersheim of CoStar discuss the current state of the industrial market as they approach the end of Q2. They explore various themes including market trends, leasing dynamics, vacancy rates, population growth, port activity, construction trends, and sales. The conversation highlights the challenges and opportunities within the market, providing insights into tenant behavior, economic predictions, and the overall health of the industrial sector.     Key Takeaways The industrial market is experiencing a weakening in fundamentals. Vacancy rates are rising, but not as steeply as before. Smaller buildings are performing better than larger ones in terms of vacancy. Tenants are gaining leverage in negotiations due to increased options. Population growth in LA and Orange County is showing positive signs. Port activity does not directly correlate with local industrial absorption. Retail sales forecasts indicate a decline in growth rates. Leasing activity is increasing, but new listings are also rising. Construction starts have significantly decreased from peak levels. Comparative analysis shows that rents in SoCal are competitive with other regions.     Chapters 00:00 - Introduction and Market Overview 02:21 - Current Market Sentiment and Trends 05:01 - Leasing Activity and Vacancy Rates 07:27 - Tenant Dynamics and Deal Economics 10:08 - Population Growth and Its Impact on Demand 12:13 - Port Activity and Its Correlation with Industrial Absorption 14:53 - Sales Trends and Institutional Interest 17:25 - Construction Trends and Future Outlook 20:03 - Subleasing Dynamics and Market Adjustments 22:18 - Comparative Analysis of Regional Markets 24:56 - Final Thoughts and Future Predictions     Resources Connect with Jesse Gundersheim https://www.linkedin.com/in/jessegundersheim/ [email protected] Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

In this episode of the Industrial Insights podcast, Justin Smith interviews Mike Myers from Lully, discussing the inefficiencies in warehouse management systems (WMS) and how Lully aims to improve operational efficiency without requiring significant changes to existing processes. They explore real-world examples of operational improvements, the challenges faced in warehouse operations, and the role of third-party logistics (3PL) providers in the current market. The conversation also touches on insights from the ProMAT conference and the future of warehouse management, including the intersection of AI and logistics.   Key Takeaways Lully focuses on improving existing WMS systems without major changes. Operational efficiency is key in logistics and warehouse management. Real-world examples demonstrate significant improvements in fulfillment times. 3PLs face unique challenges due to multiple client rules and requirements. The market for integrators in logistics is stable and growing. Old buildings will outnumber new ones, necessitating innovative solutions. AI is a part of the conversation but not the primary focus for Lully. Continuous improvement is essential for adapting to market changes. Understanding client needs is crucial for effective warehouse management. Collaboration between integrators and logistics providers is vital for success.   Chapters 00:00 - Introduction to Lully and Industry Insights 01:50 - Understanding Warehouse Management Systems (WMS) Challenges 07:40 - Real-World Examples of Operational Improvements 12:33 - Navigating Client Relationships and Expectations 18:42 - Continuous Improvement and Adaptation in Operations 21:31 - Current Trends and Challenges in the 3PL Industry 24:22 - Navigating Complex Operations 27:03 - Understanding Growth and Adaptation 30:00 - Insights from ProMAT Experience 32:53 - The Role of Integrators in Operations 35:53 - Embracing New Technologies 39:10 - The Future of AI in Operations     Episode Resources Connect with Mike Myers https://www.linkedin.com/in/mike-j-myers/ https://lully.ai/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

In this episode, Justin Smith welcomes Sharon Wellickson and Teresa Collins from the Irvine Children's Fund to discuss the Irvine Junior Games. They explore the history, impact, and structure of the event, which raises funds for childcare scholarships for low-income families. The conversation highlights community involvement, sponsorship, and the resilience of the program during the pandemic. They also touch on the importance of volunteer engagement and inclusivity in sports, culminating in a celebration of youth athletics and community spirit.   Key Takeaways The Irvine Junior Games started in 1986 as a fundraising event. The event raises approximately $200,000 annually for childcare scholarships. Over 1,400 athletes participate in various track and field events. Community sponsorships play a crucial role in funding the event. The event includes adaptive sports for students with disabilities. Volunteers are essential, with over 300 helping on the event day. The pandemic posed significant challenges, but the program adapted and survived. The event fosters community pride and involvement among families. Taco Bell's sponsorship is unique as they donate 100% of profits. The parade of athletes is a highlight, celebrating school spirit and community support.     Chapters 00:00 - Introduction to the Irvine Children's Fund and Junior Games 02:52 - The History and Impact of the Irvine Junior Games 05:33 - Athletic Events and Community Involvement 08:34 - Sponsorships and Community Support 11:17 - The Role of Volunteers and Teachers 13:55 - Adapting to Challenges: The Pandemic Experience 16:48 - Inclusivity in Sports: Adaptive PE Participation 19:34 - The Parade of Athletes and Community Spirit     Episode Resources Connect with Irvine Children's Fund & Junior Games https://irvinechildrensfund.org/irvine-junior-games/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

In this episode of the Industrial Insights podcast, Justin Smith interviews Parth Pethani, the Director of Warehouse Design and Innovation at Prologis. They discuss the evolution of robotics in warehousing, the challenges faced by warehouse operators, and the role of Prologis in providing innovative solutions. Parth shares insights on the maturity curve of warehouse automation, the importance of data analysis, and the emerging trend of Robotics as a Service. The conversation highlights the need for self-education in the industry and the exciting future of warehouse technology.   Key Takeaways Robotics is becoming increasingly important in warehouse design. The concept of 'robot forward warehousing' is gaining traction. Warehouse operations face challenges such as rising rents and labor costs. Every warehouse goes through a maturity curve in automation. Data analysis is crucial for optimizing warehouse operations. Robotics as a Service is a viable business model for many companies. Self-education is essential for successful automation transformations. Prologis aims to be a growth partner for its clients. Emerging technologies are reshaping the future of warehousing. The integration of AI and robotics will enhance warehouse efficiency.   Chapters Introduction to Robotics in Warehousing 05:34 - The Evolution of Warehouse Automation 11:05 - Prologis' Role in Warehouse Solutions 16:22 - The Intersection of Real Estate and Automation 22:56 - The Discovery Process in Automation Solutions 29:29 - Robots as a Service: A New Business Model 35:56 - Future Innovations in Warehouse Management Systems   Episode Resources Connect with Parth Pethani https://www.linkedin.com/in/parthpethani/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

In this episode of the Industrial Insights Podcast, Justin Smith interviews Rob Jensen, a PhD graduate in supply chain management, about his new venture focused on warehouse optimization. They discuss the importance of reducing overhead costs through efficient picking processes, the role of technology in modern warehouse operations, and the creation of a digital twin for better management. Rob shares insights on the ideal clients for their solutions, the value proposition based on cost savings, and the significance of education and networking in the supply chain industry.   Key Takeaways Rob Jensen has a PhD in supply chain management from the University of Arkansas. His company focuses on warehouse optimization to reduce overhead costs. The picking process in warehouses can be optimized significantly. Heuristics can limit efficiency in warehouse management systems. Creating a digital twin of a warehouse helps in optimizing pick paths. The ideal clients for their solutions are third-party logistics companies. Robotics in warehouses come with challenges that need careful consideration. Their pricing model is based on the savings they provide to clients. Education and networking are crucial in the supply chain industry. E-commerce growth is driving demand for third-party logistics services.   Chapters 05:28 - Understanding Warehouse Picking and Optimization 10:30 - Creating a Digital Twin for Warehouse Optimization 15:37 - Value Proposition and Cost Structure 20:09 - Conclusion and Future Opportunities   Episode Resources Connect with Rob Jensen https://www.linkedin.com/in/robert-f-jensen/ [email protected] Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

In this episode of the Industrial Insights podcast, Justin Smith interviews Neal Perry of Industry Coatings, discussing the intricacies of painting industrial buildings. They explore best practices, the evolution of paint materials, project management in new builds, challenges in color selection, and the importance of preventative maintenance. Neal shares insights on graffiti management, the aesthetic considerations in warehouse painting, and the significance of choosing the right materials for long-term value. The conversation emphasizes the need for due diligence when hiring contractors in the painting industry.     Key Takeaways Every job in painting is unique and requires problem-solving. Paint materials have evolved significantly due to regulations. Project management is crucial in new construction painting. Color selection impacts the longevity of paint jobs. Seasonal weather has minimal impact on painting schedules in Southern California. Repainting requires thorough evaluation and preparation of the building. Graffiti management can involve sacrificial and non-sacrificial coatings. Preventative maintenance can extend the life of paint and prevent damage. Aesthetic improvements in warehouses can enhance tenant appeal. Due diligence is essential when hiring contractors to ensure quality work.     Chapters 02:35 - The Evolution of Paints and Materials 04:54 - Project Management in New Builds 09:42 - Design Considerations and Material Choices 12:00 - Challenges with Color Longevity 13:24 - Seasonal Impacts on Painting Projects 14:32 - Understanding Repaints and Common Issues 18:44 - Evaluating Building Maintenance and Joint Repairs 21:12 - The Importance of Regular Painting and Maintenance 22:05 - Addressing Graffiti: Solutions and Challenges 24:46 - Preventative Maintenance: Keeping Buildings in Shape 27:07 - Aesthetic Considerations in Warehouse Painting 29:20 - Choosing the Right Materials for Property Value 32:44 - Due Diligence in Hiring Contractors     Episode Resources Connect with Neal Perry https://www.linkedin.com/in/neal-perry-655b1839/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith  

Justin Smith and John Gaglio explore various aspects of real estate investment and development. They discuss the importance of having an investor mindset, the unique challenges and opportunities in different markets, and the significance of collaboration in achieving successful projects. The dialogue emphasizes the need for adaptability and strategic thinking in the ever-evolving landscape of real estate.     Key Takeaways The investor mindset is crucial for success in real estate. Understanding local markets is key to effective investment. Collaboration can lead to innovative solutions in development. Global perspectives can enhance investment strategies. Adaptability is essential in the changing real estate landscape. Effective communication fosters better partnerships. Preparation is vital for navigating investment challenges. Different markets require tailored approaches. Continuous learning is important for investors. Building relationships is fundamental in real estate   Chapters 02:39 - Understanding Power Demand in Modern Buildings 05:34 - The State of the Power Grid in Southern California 08:36 - Utility Rules and Regulations Explained 11:18 - Navigating Electrical Upgrades for Buildings 14:24 - The Importance of Upstream Capacity 16:58 - Transformers: The Gatekeepers of Power 23:43 - Understanding Electrical Load and Utility Coordination 28:38 - Cost Dynamics in Electrical Upgrades 35:08 - Navigating Utility Relationships for Successful Projects 42:41 - The Importance of Communication and Relationships   Episode Resources Connect with John Gaglio https://linkedin.com/in/john-gaglio-569b46236/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

Chris Vassilian and Justin Smith discuss the evolving landscape of subleasing in Southern California, highlighting current trends, challenges, and the dynamics between landlords, tenants, and subtenants. They explore the implications of market fluctuations, the importance of financial credit, and the complexities of navigating direct leases versus subleases.   Key Takeaways Subleasing is increasingly common in Southern California. Market fluctuations have created a unique subleasing environment. Subleases often offer flexibility but may lack concessions. Racking can enhance the attractiveness of a sublease. Landlords may have the right to recapture subleased space. Financial credit of the sublessor is a growing concern. Subleasing introduces complexities with three parties involved. Direct leases can sometimes be cleaner but less efficient. Timing is crucial when subleasing to avoid paying rent unnecessarily. The current market has many subleases available for consideration.   Episode Resources Connect with Chris Vassilian https://www.linkedin.com/in/chris-vassilian/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

In this episode of the Industrial Insights podcast, Justin Smith interviews David Hickey from Hickey & Associates about the complexities of economic incentives in site selection. They discuss the various factors influencing site decisions, the misconceptions clients often have about incentives, and the importance of compliance and administration in capturing these incentives. David emphasizes the role of utilities in economic development and the current trends in industrial development, particularly in relation to power demand and sustainability. The conversation highlights the need for strategic planning and early engagement in the incentives process to maximize benefits for businesses.   Key Takeaways Incentives can strengthen business cases but won't fix bad locations. Clients often have unrealistic expectations about incentives. Understanding the local business climate is crucial for site selection. Compliance is a significant factor in receiving incentives. Utilities are becoming key partners in economic development. Economic development strategies should focus on retention and expansion. The California Compete Tax Credit is a competitive program. Many incentives are underutilized due to lack of awareness. Timing is critical when considering incentives for projects. The demand for power is a growing concern for industrial users.   Chapters 02:49 - Understanding Client Mindsets and Expectations 05:25 - Navigating Incentives: The Role of Brokers 08:18 - The Importance of Compliance in Incentive Programs 11:28 - California Competes Tax Credit: A Competitive Process 14:25 - Utility Incentives and Economic Development 23:07 - Utility Partnerships and Performance Targets 24:57 - The Role of Utilities in Site Selection 27:29 - Community Engagement and Power Demand 30:38 - The Semiconductor Boom and Infrastructure Needs 34:25 - Incentives and Economic Development Trends 37:09 - Navigating the Fiscal Cliff of Incentives 42:03 - Timing in Strategic Decision Making   Episode Resources Connect with David Hickey https://www.linkedin.com/in/davidphickey/ https://www.hickeyandassociates.com/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

In this episode of the Industrial Insights podcast, Justin Rappel from Pacific Industrial discusses the current state of the industrial real estate market, focusing on acquisitions and development strategies. He shares insights from his transition from brokerage to the principal side, the challenges and opportunities in various markets, and the impact of recent legislation on development. Rappel emphasizes the importance of understanding market dynamics, underwriting strategies, and the significance of building features in attracting tenants. The conversation also touches on the company's investment philosophy and the outlook for the future of industrial real estate.   Key Takeaways Justin Rappel transitioned from brokerage to acquisitions manager at Pacific Industrial. The industrial real estate market is currently facing supply constraints in various regions. Understanding tenant needs is crucial for successful development projects. Recent legislation in California is impacting industrial project approvals. The disconnect between buyer and seller expectations is a significant challenge. Yield on cost is prioritized over IRR in Pacific Industrial's investment strategy. Building features must align with long-term tenant needs and market demands. Market dynamics are constantly shifting, requiring adaptability in strategies. Networking and relationship-building are essential during market downturns. There are opportunities for growth and development despite current market challenges.   Chapters 02:48 - Transitioning from Brokerage to Principal 05:27 - Acquisitions and Development at Pacific Industrial 08:24 - Market Insights: Salt Lake and Vegas 11:10 - Navigating the Southern California Market 13:52 - Current Development Projects 16:49 - Legislative Impacts on Development 19:45 - Underwriting Strategies and Market Dynamics 22:23 - Building Features and Design Considerations 28:12 - Future Trends and Market Sentiment   Episode Resources Connect with Justin Rappel https://www.linkedin.com/in/justin-rappel-ab591285/ https://www.pac-industrial.com/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

In this episode of the Industrial Insights podcast, Justin Smith and Ralph Asher delve into the complexities of supply chain management, discussing current challenges, the role of automation, and the importance of data analytics. They explore how companies can optimize their supply chains through effective modeling and decision-making, while also addressing the implications of nearshoring and the evolving landscape of logistics. Ralph shares insights from his experiences at General Mills and Target, emphasizing the need for collaboration and problem-solving in the industry. The conversation concludes with advice for aspiring supply chain professionals and reflections on recent trends in the field.   Key Takeaways The importance of personal growth in professional settings. Navigating challenges can lead to unexpected opportunities. Building relationships is key to success. Reflection on past experiences can guide future decisions. Embracing change is essential for development. Collaboration can enhance problem-solving capabilities. Understanding different perspectives fosters better communication. Setting clear goals helps in achieving desired outcomes. Learning from failures is crucial for growth. Maintaining a positive mindset can influence outcomes.   Chapters 02:13 - Current Challenges in Supply Chain Management 05:25 - The Role of Automation in Supply Chains 08:51 - Understanding Client Needs and Demand 10:31 - Data Collection and Analysis in Supply Chain 13:22 - Exploring 3PL Options and Cost Structures 15:48 - Warehouse Automation and Its Implications 18:17 - Modeling Techniques and Best Practices 21:00 - The Future of AI in Supply Chain Modeling 22:43 - Trends in Data Utilization and Analytics 27:37 - Nearshoring and Its Impact on Supply Chains 30:12 - Lessons from Experience in Major Corporations 33:55 - The Importance of Collaboration and Problem Solving 35:57 - Advice for Future Supply Chain Professionals   Resources Connect with Ralph Asher https://www.linkedin.com/in/ralphasher/  https://datadrivensupplychain.com/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

In this episode of the Industrial Insights podcast, Justin Smith interviews Rob Quarton from Walker & Dunlop, discussing the evolving landscape of commercial real estate financing. They explore the impact of the pandemic on the market, current trends, and the outlook for various asset classes, including industrial, multifamily, and retail. Rob shares insights on innovative financing strategies and the importance of networking through organizations like NAIOP. The conversation emphasizes the need for adaptability and proactive engagement in the real estate sector.     Key Takeaways The pandemic caused a significant pause in the real estate market, but recovery is underway. Interest rates have a profound impact on real estate financing and investment strategies. There is a growing optimism in the market as rates begin to stabilize and decrease. Retail and industrial sectors have shown resilience and growth post-pandemic. Networking and relationships are crucial for success in real estate transactions. Innovative financing strategies are being implemented to navigate current market challenges. The importance of understanding asset class performance is key for investors and developers. Preparation and proactive engagement can lead to better opportunities in real estate. NAIOP provides valuable networking opportunities for professionals in the industry. The market is dynamic, and staying informed is essential for making strategic decisions.     Chapters 00:00 - Introduction to Commercial Real Estate Financing 02:54 - Navigating the Pandemic's Impact on Real Estate 05:40 - Current Trends in Real Estate Financing 08:58 - Dealing with Challenges in Real Estate Transactions 11:33 - Market Activity and Future Outlook 14:38 - Strategies for Success in a Volatile Market 17:42 - Asset Class Performance: Industrial, Multifamily, and Retail 20:24 - The Evolving Office Space Landscape 23:32 - Innovative Financing Strategies 26:44 - Preparing for Future Opportunities 29:21 - Involvement in NAIOP and Networking Opportunities   Episode Resources Connect with Rob Quarton https://www.linkedin.com/in/rquarton/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

In this podcast episode, Chris and Justin discuss various aspects of supply chain logistics, focusing on the concept of blend and extend leases. They explore the reasons behind this leasing strategy, the importance of landlord contributions to building improvements, and strategies for landlords to attract tenants to vacant properties. The conversation highlights the current market dynamics and the need for flexibility in leasing agreements.   Key Takeaways The busiest airport for freight in the US is Memphis. Blend and extend leases are becoming more common in today's market. Landlords may need to contribute to building improvements to attract tenants. Vacancy rates are a concern for landlords in the current market. Short-term leases can be a strategy for attracting tenants. Understanding tenant needs is crucial for successful leasing. Landlords are willing to negotiate to maintain occupancy. Capital investments in buildings can lead to better lease agreements. Market rates are higher than legacy rates for many tenants. Creative leasing strategies are necessary in a competitive market.   Chapters 01:29 - Exploring the Concept of Blending and Extending Leases 03:12 - Factors Influencing the Decision to Blend and Extend 05:36 - The Role of Building Improvements in Lease Negotiations 06:24 - Strategies for Leasing Buildings in a Competitive Market

In this episode of the Industrial Insights podcast, Justin Smith speaks with Janet Ydavoy from 910 Advisors about the complexities of supply chain management. They discuss the challenges companies face as they scale, the role of third-party logistics (3PLs), and the importance of effective inventory management. Janet shares insights on global supply chain considerations, the impact of technology and automation, and strategies for managing returns. The conversation highlights the need for a cohesive approach to supply chain operations and the emerging trends that will shape the future of the industry.   Key Takeaways Supply chain challenges can often be simplified to fundamental issues. A cohesive calendar is essential for aligning company operations. 3PLs are increasingly being utilized for global distribution needs. Effective inventory management is crucial for meeting consumer demand. Returns management is becoming a significant concern for retailers. Technology integration is key to improving supply chain efficiency. Companies must consider global inputs when designing supply chains. The transition process in supply chain management can be disruptive. Automation in warehouses is essential for optimizing operations. Future trends will focus on streamlining supply chain processes.   Chapters 00:00 - Introduction to Supply Chain Challenges 02:15 - Navigating Supply Chain Complexity 04:55 - The Role of 3PLs in Modern Supply Chains 07:18 - Inventory Management Strategies 09:12 - Global Supply Chain Considerations 11:41 - Scenario Planning and Stress Testing 13:42 - The Impact of Returns on Supply Chains 15:56 - Technology and Automation in Warehousing 18:14 - Project Management in Supply Chain Transitions 20:53 - Future Trends in Supply Chain Management   Episode Resources Connect with Janet Ydavoy https://www.linkedin.com/in/janet-ydavoy-8333b09/ https://910advisors.com/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith  

In this episode of the Industrial Insights podcast, Justin Smith interviews Chelsea Tamuk Levane from Cabot Properties. Chelsea shares her journey from intern to overseeing the West Coast operations at Cabot, discussing the company's growth, market focus, and strategic decisions in the industrial real estate sector. The conversation delves into networking, staying informed about market trends, managing acquisitions, and the challenges of the current leasing environment. Chelsea emphasizes the importance of understanding tenant needs, the intricacies of the bidding process, and the significance of in-house property management. The episode concludes with insights on exit strategies and the future outlook for industrial real estate.   Key Takeaways Chelsea Tamuk Levane has been with Cabot Properties for 10 years, starting as an intern. Cabot Properties has grown significantly, now operating in multiple international markets. Networking through organizations like NAIOP and ULI has been beneficial for Chelsea. The focus is on core coastal markets for investment opportunities. Staying informed through brokers and market data is crucial for success. Managing acquisitions requires strong organization and communication within the team. The bidding process has become more competitive, especially in a changing market. Underwriting involves both quantitative data and qualitative insights. Building attributes are still important despite current market pressures. Regular tenant communication helps mitigate surprises during the sale process.   Chapters 00:00 - Introduction to Cabot Properties and Chelsea Tamuk Levane 02:43 - Chelsea's Journey at Cabot Properties 05:37 - Expanding Cabot's Global Presence 08:15 - Market Focus and Strategic Decisions 11:12 - Staying Informed: Market Trends and Data 13:43 - Managing Acquisitions and Relationships 16:23 - Navigating the Bidding Process 19:08 - Underwriting and Deal Evaluation 21:29 - Understanding Market Dynamics 24:08 - The Art of Due Diligence 27:00 - The Papering Process and Challenges 29:40 - Exit Strategies and Market Considerations 32:19 - Value-Add Strategies in Real Estate 35:00 - The Benefits of In-House Property Management 37:35 - Future Trends and Opportunities in Industrial Real Estate     Episode Resources Connect with Chelsea Tamuk Levane https://www.linkedin.com/in/chelseactamuk/ [email protected] Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

In this conversation, Justin and Chris discuss lease reviews and common issues that arise during the process. They highlight the importance of understanding tenant obligations, hold-over clauses, and the responsibility for maintenance and repairs. They also discuss the significance of aligning the lease with the tenant's intended use of the space and negotiating clauses related to relocation and environmental concerns. The conversation concludes with a mention of the benefits of training with an expert in lease contracts and a recommendation for a lease negotiation manual.   Key Takeaways Understanding tenant obligations is crucial when reviewing a lease. Aligning the lease with the tenant's intended use of the space is important. Negotiating clauses related to relocation and environmental concerns can protect the tenant's interests. Training with an expert in lease contracts can provide valuable insights. Using a lease negotiation manual can be a helpful reference guide.   Episode Resources Connect with Chris Vassilian https://www.linkedin.com/in/chris-vassilian/ [email protected] Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

In this episode of the Industrial Insights podcast, Justin Smith interviews Jesse Gundersheim of CoStar to discuss the Q2 stats for Southern California Industrial. They cover topics such as leasing activity, vacancy rates, deliveries, and the impact of e-commerce on the market. They also touch on the sales market, cap rates, and the correlation between port imports and absorption. Overall, the conversation highlights the current state of the industrial real estate market in Southern California and provides insights into future trends.     Key Takeaways Leasing activity in Southern California Industrial is rebounding, with record volume leasing in the Inland Empire in Q2. Vacancy rates continue to rise, particularly in LA, which has the worst industrial market fundamentals in the country. Construction levels have dropped, but there is still a fair amount of supply in the pipeline, especially in the Inland Empire. Amazon is expanding its presence in the market, opening the largest industrial building in the country in Ontario and signing leases for one million square foot buildings in the Inland Empire. Port imports are on the rise, indicating strong demand for industrial space, and there is a correlation between port imports and absorption in the market. Sales activity has slowed, but there are still opportunities for investment, particularly in longer-term holds. Cap rates vary across the counties, with the Inland Empire having the lowest cap rate in the country. The market is showing signs of stabilization, with pricing potentially reaching the floor and volume starting to increase. The industrial real estate market in Southern California remains strong, driven by strong demand, historical rent growth, and barriers to entry.     Chapters 00:00 - Introduction and Collaboration with CoStar 02:16 - Leasing Activity and Vacancy Rates 06:08 - Construction Levels and Supply Pipeline 15:22 - Amazon's Expansion and Market Impact 19:39 - Correlation Between Port Imports and Absorption 23:05 - Sales Activity and Investment Opportunities 26:21 - Cap Rates and Pricing Trends 28:24 - Stabilization and Future Outlook of the Market     Resources Connect with Jesse Gundersheim https://www.linkedin.com/in/jessegundersheim/ [email protected]  Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

Michael Bucci, an investor in the industrial asset class, shares his journey and approach to investing in industrial real estate. He focuses on value-add properties for warehousing and distribution, with a preference for multi-tenant spaces. Bucci emphasizes the importance of understanding the market and the needs of the owners when approaching deals. He also discusses the financing process, including bridge loans and long-term loans. Bucci highlights the resilience of the industrial real estate market and the need to adapt to different market cycles. In this conversation, Michael Bucci discusses his experience in real estate acquisitions and the challenges he faced. He talks about how he navigated the market during the COVID-19 pandemic and the strategies he used to educate and negotiate with sellers. Michael also highlights the differences between the Canadian and US real estate markets, including tax advantages and market size. He shares examples of successful deals and explains his future plans for expanding his business. The conversation concludes with a discussion on the potential for condo conversions in the multi-tenant industrial sector.   Key Takeaways Understanding the market and the needs of owners is crucial in industrial real estate investing. Value-add properties with upside potential are preferred, especially those with low rents, expiring leases, or vacancies. Bridge loans are often used to finance value-add acquisitions, with refinancing as a long-term strategy. Adapting to different market cycles and structuring deals strategically is key to success in industrial real estate investing. Navigating the real estate market during challenging times requires creativity and flexibility. Educating sellers on the current market conditions and the value of their property can help facilitate deals. The Canadian and US real estate markets have different tax advantages and market sizes. Successful deals can be achieved by finding unique opportunities and leveraging seller financing. Condo conversions can be a profitable strategy in the multi-tenant industrial sector.   Chapters 00:00 - Introduction and Background 03:00 - Investing in Industrial Real Estate 07:36 - Finding Value-Add Opportunities 17:40 - Staying on as an Equity Partner 19:25 - Building an Acquisitions Pipeline 22:21 - Catering to Owner Needs 26:25 - Financing Strategies 28:25 - Adapting to Market Cycles 31:06 - Educating Sellers and Negotiating Deals 34:42 - Differences Between the Canadian and US Real Estate Markets 45:42 - Successful Deals and Future Plans 50:49 - The Potential for Condo Conversions in the Multi-Tenant Industrial Sector   Resources Connect with Michael Bucci https://www.linkedin.com/in/michael-bucci-real-estate/  https://investingrealestate.com/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

In this episode, Justin Smith interviews Ralph Asher, an expert in network design and optimization. Ralph shares his background working at Target and General Mills, where he focused on supply chain design. He discusses the challenges and opportunities of network design during mergers and acquisitions, as well as the importance of data management in the process. Ralph also talks about his experience at Target, where he worked on omni-channel and last-mile e-commerce network design. He then shares his transition to independent consulting and the importance of marketing and sales in running a consulting business. Ralph Asher discusses the transition from working in-house to running his own consulting agency and the types of projects his team works on. They specialize in supply chain design, inventory optimization, network design, manufacturing optimization, and data analysis. They work with a wide range of sectors, but the common thread is that their clients want a data-driven approach. Ralph also highlights the importance of data in making supply chain decisions and dispels the misconception that perfect data is necessary. He emphasizes the impact of their projects, such as opening new facilities and changing organizations' approach to inventory optimization. Ralph discusses the handoff process and the role of supply chain project managers in executing the recommendations. He also mentions the increasing trend of using supply chain models for shorter-term decision-making.   Key Takeaways Network design and optimization play a crucial role in supply chain decision-making, especially during mergers and acquisitions. Data management is a significant challenge when integrating supply chain models from different companies during M&A. Omni-channel and last-mile e-commerce network design require innovative approaches and considerations for proximity to customers. Transitioning to independent consulting requires a focus on marketing, sales, and business administration in addition to supply chain expertise. Professional networks and public speaking engagements are effective sources of business for independent consultants. Transitioning from in-house to running a consulting agency involves working on a wide range of projects for different organizations. Supply chain design, inventory optimization, network design, and manufacturing optimization are some of the key projects Ralph's team works on. Their clients value a data-driven approach and are willing to provide data for analysis and recommendations. Data quality is not a barrier to making supply chain decisions, and even limited data can be used to make strategic insights. The impact of their projects includes opening new facilities and changing organizations' approach to inventory optimization. Supply chain project managers play a crucial role in executing the recommendations and coordinating with stakeholders. Supply chain models can be used for shorter-term decision-making and provide insights for adjusting strategies. Ralph emphasizes the importance of professional development for individuals working on supply chain projects.   Connect with Ralph Asher https://www.linkedin.com/in/ralphasher/  https://datadrivensupplychain.com/  Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

Eric Ruehle of West Harbor Capital discusses the company's background and their focus on the industrial real estate market. They specialize in value-add investments in the Southern California region, with a deal size of $10 to $50 million. Ruehle emphasizes the importance of relationships in the industry and the value of high barriers to entry, such as entitlement and zoning challenges. He also discusses the current state of the capital markets and the leasing market, noting that while there are challenges, long-term trends in the industrial sector remain positive.   Key Takeaways West Harbor Capital focuses on value-add investments in the industrial real estate market in Southern California. Relationships and high barriers to entry are key factors in adding value to properties. The capital markets are stabilizing, and there is plenty of equity available for industrial investments. Leasing fundamentals are softening in Southern California, but long-term trends remain positive. The company is optimistic about the future of the industrial sector, with strong tailwinds from e-commerce, manufacturing growth, and supply-demand imbalances.   Chapters 00:00 - Introduction and Background 01:20 - Founding of West Harbor Capital 03:16 - First Deals and Capital Partnerships 06:24 - Expansion into New Markets 08:01 - Regional and National Approach 09:06 - Favorite Markets and Market Dynamics 13:35 - State of the Capital Markets 15:54 - Leasing Fundamentals and Underwriting 18:09 - Bread and Butter Deals 23:12 - Adding Value and Exit Strategies 29:16 - Optimism for the Future of the Industrial Sector   Episode Resources Connect with Eric Ruehle https://www.linkedin.com/in/ericruehle/ https://www.westharborcap.com/  Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

In this episode of Industrial Insights, Chris Vasilian discusses tenant representation frequently asked questions. The two main topics covered are the need for office space with a small warehouse component and the decision between lease renewals and relocations. Chris explains the different options for combining office and warehouse space and the considerations for each. He also discusses the factors that influence the decision between renewing a lease or relocating, including cost savings, space optimization, and market conditions. The conversation also touches on topics such as rental rates, free rent concessions, and negotiating operating expenses.   Key Takeaways When combining office and warehouse space, options include adding a storage component to an office building, leasing flex space with a high office percentage, or leasing pure office space and using an offsite self-storage facility. The decision between lease renewals and relocations depends on factors such as cost savings, space optimization, and market conditions. Rent rates have softened in certain cities and size segments, but the extent of the decline varies depending on the location and ownership structure of the building. Free rent concessions are common in lease negotiations, but the way they are structured can vary. Some leases add the free months to the end of the term, while others adjust the rent schedule to account for the free months. Operating expenses are typically not included in free rent concessions, but it is possible to negotiate for their abatement as well.   Chapters 00:00Combining Office and Warehouse Space 03:17Lease Renewals vs Relocations 06:21Rental Rates and Market Conditions 08:55The Structure of Free Rent Concessions 13:21Negotiating Operating Expenses   Episode Resources Connect with Chris Vassilian https://www.linkedin.com/in/chris-vassilian/ [email protected] Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

Chinese 3PLs are increasingly leasing space in the Inland Empire, Orange County, and LA County due to the growth of manufacturing in China and the need for storage and distribution in the US. Despite initial concerns about the financial stability of these companies, many have honored their commitments and even received security deposit refunds. Landlords have become more flexible in underwriting credit for these tenants. Tenant representation for Chinese 3PLs often involves providing full client service support and coordinating with various vendors for services such as office design, security, IT, and signage. The language barrier and time zone difference can be overcome through effective communication and daily interaction. Relocating can be challenging and time-consuming, requiring careful coordination and project management.   Key Takeaways Chinese 3PLs are leasing space in the Inland Empire, Orange County, and LA County due to the growth of manufacturing in China. Despite initial concerns, many Chinese 3PLs have honored their commitments and received security deposit refunds. Landlords have become more flexible in underwriting credit for Chinese 3PLs. Tenant representation for Chinese 3PLs involves providing full client service support and coordinating with various vendors. Effective communication and daily interaction can overcome the language barrier and time zone difference. Relocating can be challenging and time-consuming, requiring careful coordination and project management. Chapters 00:00 - Rise of Chinese 3PLs in Southern California 01:43 - Financial Stability and Lease Terms of Chinese 3PLs 02:21 - Impact of COVID-19 on Chinese 3PLs 05:00 - Full Client Service Support for Chinese 3PLs 06:26 - Overcoming Language Barrier and Time Zone Difference 07:18 - Challenges and Coordination in Relocating for Chinese 3PLs   Episode Resources Connect with Chris Vassilian https://www.linkedin.com/in/chris-vassilian/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith

Rob Guthrie, founder of Guthrie Development, shares his experience in industrial real estate, specifically in condo conversions and value-add strategies. He discusses his background in real estate development and his specialization in small industrial buildings for sale. Rob emphasizes the importance of location and demographics when considering condo conversions and highlights the benefits of owning a small business property. He also talks about the challenges and pitfalls of condo conversions, including market fluctuations and the need for flexibility in financing and leasing options. In this conversation, Rob Guthrie and Justin Smith discuss the real estate industry, specifically focusing on multi-tenant industrial properties. They talk about the target market for these properties, the challenges of attracting institutional investors, and the value-add process for improving older properties. They also touch on design features, dealing with environmental issues, and advice for those interested in entering the industry.   Key Takeaways Condo conversions can be a successful strategy in industrial real estate, especially for small business owners who want to own their own space. Location and demographics play a crucial role in the success of condo conversions, as buyers often prefer to work close to where they live. Condo conversions provide flexibility in terms of leasing and financing options, allowing for income generation even in a slow sales market. Pitfalls of condo conversions include market fluctuations, the discretionary nature of the purchase decision, and the need for careful management of timelines and entitlements. Private equity investment, including friends and family and country club equity, is common in the industrial real estate market. The target market for multi-tenant industrial properties is younger brokers with experience and knowledge in the industry. Attracting institutional investors can be challenging due to their preference for other asset classes. The value-add process for improving older properties involves making functional improvements, re-tenanting, and enhancing the exterior appearance. Dealing with environmental issues can be time-consuming and costly, so it's important to carefully consider the feasibility of such projects. Joint ventures with building owners can be a win-win situation, allowing for shared profits and mitigating risk. Having a good listing agent is crucial for finding deals and navigating the real estate market. It's important to be patient and leave room for unexpected expenses in real estate projects. Soft costs, such as permits and fees, can significantly impact the profitability of a project. The real estate industry offers opportunities for those willing to start small and gain experience. Aligning interests and forming partnerships can lead to long-term benefits in real estate projects.     Episode Resources Connect with Rob Guthrie https://guthriedevelopment.com/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith   Chapters 00:00 Introduction and Background 06:38 Condo Conversions and Association Management 08:06 Underwriting and Comparing Lease vs. Buy 09:30 Location and Demographics in Condo Conversions 11:05 Benefits and Challenges of Condo Conversions 19:13 Value-Add Strategies and Successful Projects 25:20 Expanding Territory and Market Insights 26:16 Condo Project Pitfalls and Risk Mitigation 28:03 Lease Options and Financing Solutions 31:23 Private Equity Investment in Industrial Real Estate 32:02 Targeting the Sweet Spot: Young Brokers in the Multi-Tenant Industrial Market 34:22 Challenges in Attracting Institutional Investors to Multi-Tenant Industrial Properties 35:59 The Value-Add Process: Improving Older Properties for Higher Returns 39:13 Dealing with Environmental Issues in Multi-Tenant Industrial Projects 52:27 Joint Ventures: A Win-Win Approach to Real Estate Development 53:52 The Importance of a Good Listing Agent in the Real Estate Market 55:30 Patience and Contingency: Key Factors in Real Estate Projects 56:00 Starting Small: Opportunities for Newcomers in the Real Estate Industry 59:44 Aligning Interests: The Power of Partnerships in Real Estate

In this episode, Justin Smith interviews Michael Schulte of Intralog about setting up a warehouse and the role of brokers in the process. Intralog is a material handling systems integrator that brings data-driven design to customers who may not have access to it. They discuss network optimization, which involves using mathematical optimization to minimize costs and improve service levels in supply chain network design. They also explore the latest trends in warehouse design, including considerations for activity areas such as picking and value-added services. In this conversation, Justin Smith and Michael Schulte discuss the implementation and challenges of warehouse design and optimization. They cover topics such as the importance of communication, the role of data in designing storage solutions, the impact of supply chain network design, and the value of strategic equipment selection. They also touch on the influence of municipalities on warehouse design and the considerations involved in real estate negotiations. Overall, the conversation provides insights into the key factors and best practices for successful warehouse design and optimization.   Takeaways Setting up a warehouse requires careful consideration of factors such as customer demand, growth projections, and optimization of processes. Network optimization, using mathematical optimization, can help minimize costs and improve service levels in supply chain network design. Warehouse design involves determining the size of the footprint, considering activity areas such as picking and value-added services, and balancing time and space constraints. Brokers play a valuable role in matching theoretical design concepts to the reality of the market and helping customers make informed decisions. Effective communication is crucial in warehouse design and optimization projects. Accurate and clean data is essential for designing storage solutions. Strategic equipment selection can lead to cost savings and improved efficiency. Considerations such as fire codes and municipal regulations can impact warehouse design. Real estate negotiations require careful consideration of the investment in the facility and the potential for future growth. Episode Resources Connect with Michael Schulte https://www.linkedin.com/in/michaeldschulte/ https://intralog.io/  Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ [email protected] https://www.linkedin.com/in/justinbsmith  

At the most fundamental level, a change of ownership adds another party to the agreement that was not present during the initial negotiations. There are times when nothing changes except for the property manager and life goes on. However, a new landlord is usually a sign of change to come.