The Fort - An Entrepreneurship Podcast

#371 - Jack Fraker - President, Global Head of Industrial & Logistics @ Newmark - Macro Overview of Industrial Real Estate

Nov 19, 2024

Jack Fraker, President and Global Head of Industrial & Logistics at Newmark, shares his extensive experience in industrial real estate. He discusses the current global landscape and trends in development, leasing, and sales. The conversation highlights how rising interest rates impact U.S. industrial markets and the increasing demand for warehouse space driven by e-commerce. Fraker also explores the future of industrial real estate in Texas and Mexico, along with challenges faced during tenant relocations due to local opposition.

01:02:57

Episode guests

Jack Fraker

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Episode notes

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Quick takeaways

Investors are shifting from traditional assets to diverse industrial portfolios, responding to higher costs and complexities in Manhattan office buildings.

Technological innovations like Vesto are streamlining financial management for real estate firms, enhancing their focus on strategic decision-making.

Geopolitical changes and a renewed focus on domestic production are reshaping supply chains, presenting new investment opportunities in the U.S. logistics sector.

Deep dives

Shift in Investment Preferences

Overseas investors historically gravitated towards Manhattan office buildings due to their size and potential for substantial returns. However, this asset class has revealed higher costs and complexities associated with leasing and tenant renewals, prompting a reevaluation of investment strategies. Investors are now exploring larger, multi-building portfolios across various cities, which allows for more significant financial commitments and better risk diversification. This shift is attracting attention from Middle Eastern, Asian, and European investors, who are looking for opportunities that align more effectively with their investment goals.

Intro

4min

Navigating International Industrial Real Estate

21min

Trends in U.S. Industrial Real Estate

7min

Effective Spec Development in Industrial Real Estate

5min

Navigating the Industrial Real Estate Boom

19min

Challenges of Industrial Relocation Amid NIMBYism

2min

Navigating Billion-Dollar Real Estate Deals

4min

Jack Fraker is President and Global Head of Industrial & Logistics Capital Markets for Newmark. He is responsible for driving Newmark’s industrial & logistics business, primarily capital markets but also leasing.

Jack has personally completed over 1,800 industrial & logistics capital markets transactions totaling 1.5 billion square feet | $85 billion in more than 60 U.S. cities, Mexico, Europe, Japan, and South America. He has also advised on approximately 12,000 acres of development sites and over 300 office/industrial leasing assignments. As a partner with other firms prior to Newmark, Jack was cumulatively involved in over 3.3 billion square feet | $220 billion in various projects.

We discuss: