Retail or Industrial?

[Martin Ceja]

With so many HUGE anchor stores, such as, JC Penny, Macy's, Sears and others closing many stores around the country, what's the future of retail? Is industrial going to keep booming because of online retailers like Amazon? Or will retail bounce back in the future with new mixed use buildings and more modern "hip" retail companies needing a place to lease? 

[Rob Gillespie]

HI Martin, 

I have done industrial turn around projects and I do not like retail. Retail is WAYYYYY over built. it is nothing buy a showroom for what to buy on line. 

With that said, I do residential because of the double digit returns.  Industrial is my second favorite because of the huge upside if you know what you are doing. 

If you do industrial, consider the following....

ceiling height

Power

beam spacing

distance to highway

zoning

EPA issues

proximity to railway

those few things can make or break industrial leasing. 

Hope that helps! 

Good luck