Inside MCA’s Small-Bay Industrial Playbook

In this episode of the Industrial Real Estate Show, Tyler Maddox from MCA Realty shares his 35-year journey from brokerage to leading a Western US-focused industrial investment firm. MCA targets small to mid-bay industrial properties in primary and secondary markets from Texas westward, avoiding tertiary areas due to lower liquidity. Starting in 2011, they concentrated on multi-tenant assets with below-market rents, improving and stabilizing them before selling or refinancing. Their first fund of $50 million launched in 2020, followed by a $100 million second fund in 2024. Maddox explains that their strategy has remained consistent through market shifts, focusing on under-managed assets owned by private investors and upgrading them to capture rent growth, while minimizing risk through tenant diversity.

He emphasizes that small-bay industrial is operationally intensive compared to big-box single-tenant buildings, with challenges such as managing mom-and-pop tenants, short leases, credit risk, and varying eviction laws. Despite these hurdles, limited new supply supports resilience in rents and occupancy. Maddox also notes emerging issues like increasing tenant power demands amid strained electrical infrastructure, as well as opportunities in industrial condominiums for owner-users. He credits MCA’s success to quick decision-making, discretionary capital, and a strong, complementary team, and sees continued long-term opportunity in the small-bay space due to its scarcity and tenant demand.

About Tyler:

Mr. Mattox is a Principal at MCA Realty and is responsible for directing the investment related activities including the acquisition, development and disposition of all investments, as well as oversight on the firms asset management. Mr. Mattox has over 33 years of broad based real estate experience.

Prior to MCA Realty, Mr. Mattox was the Principal Owner of Mattox Property Services, an opportunistic real estate investment and development company that identified and acquired underperforming assets. In this role, he managed all facets of the repositioning process, including acquisitions, financial underwriting, debt and equity capitalization and physical due diligence. Prior to the formation of Mattox Property Services, Mr. Mattox was employed by CBRE and during his tenure rose to the level of Senior Vice President, the highest office available to producers at the time of his departure.

Connect with Tyler:

Website: https://mca-realty.com/tyler-mattox/

LinkedIn: https://www.linkedin.com/in/tyler-mattox-6723218

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