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Dividend Dollars's avatar
Dividend Dollars
$32.7MFollowers
@dividenddollarsMay 4
Industrial Real Estate in Arizona
Through my day job, I had a meeting and lunch with one of the largest industrial real estate owners in Arizona earlier this week. He owns over 12 million square feet of industrial real estate projects. He’s beginning to do a lot of development projects this year. And he even has more cash on the side waiting to use to buy failed projects, but no opportunities have really shown yet.

He shared with me an awesome report from CBRE on the Phoenix industrial real estate market. It is a tight market. Rental rates have increased almost 15 percent and 45 million sf of construction is underway while tenants have a demand of roughly 46 million sf. Hot hot market.
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I’m not generally a big proponent of REITs, but $EGP seems to be the only reit that I can find that has a focus on industrial RE in Arizona. Do with this information what you will. I’m looking into EGP and may start a position 🧐
Joshua Simka's avatar
Joshua Simka
@tomatoMay 5
Great scuttlebutt! Do any non-REIT opportunities related to the scenario you're describing occur to you? What about something like $SSD (building materials producer and maker of structural connectors, anchors, and products for new construction) or $LMB (building systems solutions firm handling design, prefabrication, installation, management/maintenance of HVAC, mechanical, electrical, plumbing and controls systems)?
Dividend Dollars's avatar
Dividend Dollars
@dividenddollarsMay 6Author
@tomato both sound like they could benefit! However, they are one step removed from the consistent income of the lease as a cost to develop the end product. Once the market stabilizes and growth slows, they’re benefits from the scenario also will. That’s why I think the reit is the preferred way to do it, once these new buildings are developed and tenants sign leases, that income is stable for a considerable amount of time.
Nathan Worden's avatar
Nathan Worden
@nathanwordenMay 5
Would be curious to hear @owlsbeak's take on Eastgroup Properties, since the've owned it for a bit:
Image upload
Alberto Sigismondi's avatar
Alberto Sigismondi
@asigismo1974May 6
If you add to this that the Arizona housing market it’s been on fire, then all makes even more sense. I’ve been trying to enter the RE market there but cmon… too expensive
Dividend Dollars's avatar
Dividend Dollars
@dividenddollarsMay 6Author
@asigismo1974 it is quite expensive! But expensive for a reason, the growth is insane.
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Dividend Dollars
$32.7MFollowers
@dividenddollars
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