Written by Sven Tustin, Chief Growth Officer
During this unique time in the market, it is important to be opportunistic as a company. While real estate market fundamentals remain strong, capital markets are experiencing quite a bit of volatility. More so than ever, it is necessary to find opportunities in the real estate market with appropriate risk-adjusted returns for our investment partners. Fortunately, Conor is in a position where we can leverage our strong local relationships to identify opportunities as they come up in real time.
In addition to our core business of speculative industrial development, Conor is focused on a new line of business that we find very attractive: mark-to-market acquisition opportunities.
We have seen significant rent growth over the last two years in many of our markets. Because of this, buildings that were leased five years ago are now significantly under leased from a rental rate standpoint. The mark-to-market investment involves purchasing existing properties that have lease terms of less than three years, holding on to them until the leases expire, and then benefiting from those leases expiring in a higher rental rate environment.
Identifying compelling opportunities for our investors remains at the forefront for Conor, and we welcome the chance to stretch our creativity as we adapt to changing market conditions.