Dimitar Dunchev’s Post

🔥 M&A is a hot topic in the building materials industry. But what percent of businesses are actually getting acquired? The Nickel team asked 500 suppliers to find out. Here are the results 👇 A quick note about our methodology: → Tried our best to pick 100 businesses at random in five product segments → Only asked retailers and two-step distributors → Exclude businesses generating more than $100M in annual revenue (estimated based on headcount) 🎯 THE RESULT: Out of 466 businesses that we heard from, 14 or 3% were acquired in the last three years → Windows & Doors: 0/91 (0%) → Millwork and flooring: 1/98 (1%) → Interior fixtures (lighting, kitchen & bath, etc): 2/94 (2%) → Lumber: 6/87 (7%) → MEP (excluding fixtures): 5/96 (5%) 💰 Who made the acquisitions? Private Equity Firm: 7/14 (50%) Larger Competitor: 5/14 (35%) Merged with a Peer: 2/14 (15%) What do you think about these results? They're by no means scientific. But are they consistent with what you're seeing/hearing? #Construction #ConstructionMergers #ConstructionMarketTrends #ConstructionTech

⭐CLOSED! Our next acquisition is in the books! 12 Units in Kernersville, NC. All 2Bd/1.5Ba. We are super excited with this project, it's going to be an amazing asset to have in our portfolio. 🔥 💵 PP $1,050,000 7% pref 2.2 EM 5-7 year hold 24 months return of equity 📋PLAN : • Increase current rents as-is (~$691 to $950) since they are extremely below market. • Modernize apartments with renovations to increase rents further ($950 to $1200) 🏗️ CAPEX $185k : • Cabinets • Granite Countertops • Updated Fixtures • New Appliances • LVP Flooring • Renovate Bathrooms • Implement Utility Billback – Water/Sewer • Charge Washer/Dryer Rental Fees This project was a tough acquisition on all fronts, but we persevered and refused to let up. We gained $150k in equity at purchase! Thanks to the amazing project leads on this deal - Cole Farrell Joao Macavilca Nate Pharmer-Eden, MS OLA Looking forward to doing more deals together! ↗️ Please reach out if YOU would like to learn about passively investing in real estate. 🏠💰 #TalbottInvestments

One of my favorite parts of buying industrial property is the opportunity to learn about our tenant's businesses; what they do, how they operate, and be able to be a part of helping them improve as well. #BuildingFreedom #CreatingCommunities #CREinvesting #Industrial #Warehouse #BusinessConsulting

In the News 📰 Prologis is both building and giving guidance that #Industrial is slowing. In March, they expected to develop $3-$3.5B in new Industrial development. Read 👉 https://lnkd.in/gJpkeeXB But just yesterday, Prologis cut its annual outlook despite stronger first quarter revenue and earnings. Read 👉 https://lnkd.in/g8A_m4eA Hamid Moghadam – CEO of Prologis said, “It’s a very perplexing environment and one that I haven’t seen before. You have all the indicators of demand, whether it’s top-line GDP or #retail sales or #ecommerce sales, which are on fire, all pointing in the right direction,” Moghadam said. “But people are not converting that into as much actual leased space.” This news immediately impacted some of the larger players in the space, noting tenants negotiating harder and pointing directly to Prologis’ guidance. So what gives? Like everything in real estate, it depends on the product and the market. Two products remain in high demand in most markets: 1️⃣ Shallow Bay Logistics 2️⃣ Industrial Outside Storage. My take on the subject: everyone needs more yard space, and developers keep building tilt boxes. Build more yard space, IOS is the answer. Source : Commercial Observer & The Wall Street Journal __________ SRS Industrial Vice President: Nate Niehuus #srsindustrial #srs #srsrealestatepartners #cre #industrialoutsidestorage #inthenews #Texas #Austin #ShallowBay

🔴 Here’s why we didn’t buy this 8k sq ft building, (it's probably not what you are thinking.) Our acquisitions team has looked at hundreds of industrial properties. A few weeks ago, a deal came to our team  And after walking through it in person, it was a clear no 👎 What did we find that we didn’t like? ❌ Poor Location ❌ $50-$100k in remodel costs to finish the space ❌ Weak Leasing Rate ❌ 10 foot Ceilings Location, remodel, and lease rate probably make sense. 🤔 But why do we care about the height of the ceilings? Here are 3 reasons why ceiling height matters in industrial buildings: ✅ Equipment & Machinery Industrial tenants often use machinery (like forklifts) and need tall overhead clearance ✅ Storage Short ceilings limit vertical storage space. Taller ceilings = increased storage. ✅ Tenant Base Short ceilings restrict the pool of potential tenants and decrease the potential lease rate. Many newer warehouses have ceiling heights around (or even above) 30 feet. While smaller buildings like this can be a great investment ⤵ Ceiling height (and clear height) are critical to evaluate! 👉 Did you find this informative? Let me know in the comments! #investinginrealestate

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Industrial property in south Jersey is moving, and there’s more to come in 2024. Interested in getting your feet wet? Need a property? Want to invest but don’t know where to start? Nervous about conducting adequate due diligence to ensure you don’t end up with a lemon? I’m always happy to help so don’t hesitate to reach out, even if you’re just testing the water. #industrialdevelopment #commercialrealestate #newjerseyrealestate #duediligence #propertyinvesting

🏢🔧 Stately Expands with Strategic Acquisition to Strengthen Market Position 🚀🌍 🔍 Learn about Stately's recent acquisition and how it bolsters their market position in the construction industry. This article covers the strategic goals, benefits of the acquisition, and its impact on future projects. Essential reading for industry professionals and business strategists! 🌟🏗️ 👉 Read the full article on Highways Today: https://lnkd.in/e2x374_R #ConstructionIndustry #HighwaysToday #Stately #StrategicAcquisition #BusinessGrowth #MarketExpansion #IndustryInnovation #FutureProjects #BuildingSuccess

Industrial Real Estate's Biggest Operators Add Space Despite Slowdown Prologis and Blackstone's Link Logistics among firms erecting additional warehouses and planning for more leasing #darwinpw #corfacinternational #industrialrealestate Read more: https://lnkd.in/gsXmRmzu

Why More Manufacturers Should Buy Their Buildings Manufacturing businesses often lease their space, but ownership offers strategic advantages that many overlook. Here are just a few of the reasons why more manufacturers should consider buying their buildings: 🔹 True Flexibility: Owning allows you to expand, remodel, or sell without landlord restrictions ensuring no lease gets in the way of your business goals. 🔹 Long-term Cost Control: Avoid rising lease rates and unpredictable maintenance or operating expenses by owning your space. 🔹 Build Equity: Ownership can build substantial equity over time and if holding long term, can provide a stream of income in retirement. Curious about the market and ownership opportunities? Explore the full post in the comments and reach out to Modern CRE for expert guidance. #Manufacturing #CommercialRealEstate #BuyWarehouse #CRE