Investment Strategy: Two-Prong Approach
Trowbridge Development's investment strategy leverages a two-prong approach, focusing on acquiring existing value-add properties and pursuing new development opportunities in the small-bay, multi-tenant industrial sector.
Value-Add: The first prong targets the acquisition of existing value-add properties. Trowbridge will identify small-bay industrial properties ranging from 20,000 to 75,000 square feet in markets with strong economic fundamentals. The focus will be on multi-tenant facilities accommodating diverse industries like e-commerce, logistics and distribution, light manufacturing, service oriented businesses, and construction companies.
Properties will be selected based on indicators such as high vacancy rates, below-market rents, and outdated facilities. Strategic renovations and operational improvements will enhance property value and tenant satisfaction. With an average occupancy rate projected at 96%, these acquisitions are expected to generate consistent cash flow from multiple tenants, thereby reducing financial risk. Trowbridge will employ tactical leasing strategies to fill vacancies quickly, adjusting rental rates in response to market conditions due to shorter lease terms.
Development: The second prong focuses on new development opportunities. Trowbridge will identify underutilized land in strategic locations with access to transportation networks that capitalizes on suburban sprawl, accommodating the growing demand for logistics and distribution needs. Thorough market analysis will assess the demand for flexible industrial spaces, particularly in light of e-commerce growth, projected to account for 20% of retail sales.
New developments will feature adaptable designs to meet evolving business needs, incorporating modern amenities and energy-efficient systems. Trowbridge will seek partnerships with local governments and economic development agencies to secure incentives and financing. This balanced approach will create a diversified portfolio, combining income-generating acquisitions with growth-oriented development projects, positioning Trowbridge Development for attractive returns while meeting the increasing demand for flexible industrial spaces.
