Private Equity uses a similar structure whether it's a big fund of a one-off investment. Investors receive market returns and a large amount of the upside. General partners receive a promotion reward for finding, creating, and managing the investment. Profits are either returned to investors or reinvested.
Using Freight Flows as guide for investment decisions. Core nodes and most heavily trafficked corridors are shown on this GIS patterned map. Best locations tend to be where freight flows are greatest and you can serve a large metro areas at the same time. Key markets like Dallas, Los Angeles, New Jersey, Altanta, Chicago will serve locally and regionally.
One of more popular strategies and entails less risk is to have an Occupier-In-Tow. It is very common in build-to-suit and major corporations use this strategy when developing major distribution facilities. It generally reduces the cost of capital all around and removes much of the uncertainty. Occupiers benefit with cheaper rent and more favorable terms for a brand new building.
There are a universe of strategies dependent on location and market conditions. Other factors to determine your place in the universe include capital, occupancy, risk profile, and experience. Building investments and spaces come easier when you take a strategic approach in the Industrial Real Estate Universe.