The Fort - An Entrepreneurship Podcast

#313 - Sean Dalfen - CEO @ Dalfen Industrial - Investing in Industrial RE Across North America

Oct 10, 2023

Sean Dalfen, CEO of Dalfen Industrial, talks about the state of construction, predictions for the DFW market, robotics implementation in industrial spaces, industrial outdoor storage, and the evolving supply chain. He also shares his thoughts on Amazon and the criteria for buying deals in industrial real estate.

01:07:04

Episode guests

Sean Dalfen

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Episode notes

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Quick takeaways

Leasing activity in the industrial sector favors smaller spaces with longer-term leases, benefiting property owners with higher rental rates and limited supply.

Delays and rising construction costs create an advantage for long-term industrial property holders, as reduced activity and limited supply will drive up rental rates in the future.

Industrial Outdoor Storage (iOS) is growing in demand due to e-commerce, creating opportunities for investors to consolidate and optimize fragmented iOS spaces.

Deep dives

Growing Demand for Smaller Industrial Spaces

Leasing activity in the industrial sector remains strong, with smaller industrial spaces experiencing higher demand than larger ones. Markets like the Inland Empire have high demand for spaces over a million square feet, while demand for smaller spaces under 100,000 square feet is relatively lower. The current market trend favors smaller spaces, and tenants are increasingly interested in locking in longer-term leases. This presents an advantage for industrial property owners who can benefit from higher rental rates and a limited supply of new industrial spaces.

Introduction

4min

Exploring Market Environment and Choosing Real Estate over Stocks

2min

Challenges in Construction and Rising Prices

26min

Concerns about Oversupply of Industrial Real Estate in Dallas

12min

Characteristics of a Market with High Demand for Industrial Spaces

2min

Banking Strategies for Foreclosing on Loans and Asset Value

4min

The Rise of Industrial Outdoor Storage (iOS)

14min

Criteria for Buying Deals in Industrial Real Estate

3min

Sean Dalfen is the President and Chief Executive Officer of Dalfen Industrial and leads the firm’s investment committees and management committees across its platforms. Under Sean’s leadership, Dalfen Industrial’s portfolio has grown to over 50 million square feet of industrial properties from coast to coast, making it one of the nation’s largest owners and developers of industrial real estate and a leader in the last-mile sector. Over his career, Sean has transacted on in excess of $10 billion

On this episode, Chris and Sean discuss:

- A deep dive on the state of construction

- Predictions for the DFW market

- Robotics implementation in industrial spaces

- Industrial Outdoor Storage

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Links

Sean's first appearance on The Fort

Dalfen Industrial

Topics

(00:00:00) Intro