Our Approach
Industrial real estate is at the core of supply chain growth — yet many properties lag in functionality and leasing. We target assets with strong locations but obsolete features, and reposition them with upgrades and new tenancy to capture today’s demand for logistics and flex space.
Unlike ground-up development, value-add industrial often comes with existing cash flows, providing income that helps de-risk execution while capital improvements are underway. This allows us to pursue both stability and upside: preserving yield from in-place tenants while unlocking market rents through targeted upgrades.
Where We Focus
Distribution and flex assets in high-demand corridors across the Texas Triangle — Houston, Dallas–Fort Worth, Austin, and San Antonio. We look for properties with deferred maintenance, outdated clear heights, inefficient loading, or rollover risk. Many of these assets are overlooked but can be transformed into competitive space with the right execution.
Execution Levers
- Re-leasing to logistics, e-commerce, and light manufacturing tenants
- Capital improvements such as dock upgrades, roof replacements, and LED lighting retrofits
- Reconfiguring sites for modern truck circulation and parking requirements
- Subdivision or expansion to increase Gross Leasable Area and match tenant demand profiles
- Disciplined lease structuring and capital deployment to stabilize long-term cash flow
Proven Playbook
Value-add industrial has reshaped markets nationwide, with billions of dollars deployed to reposition obsolete warehouses into competitive assets. From dock upgrades to site overhauls, we apply the same clarity and discipline that guide our broader platform. Lessons from Value-Add Retail and Ground-Up Industrial reinforce the repeatability of this strategy.
Texas Triangle Market Context
The Texas Triangle is one of the most dynamic industrial corridors in the U.S.:
- Houston: Port-driven demand tied to global trade and energy.
- Dallas–Fort Worth: A national distribution hub with unmatched highway connectivity.
- Austin: A rapidly growing semiconductor and tech manufacturing base.
- San Antonio: An industrial corridor with strong manufacturing and logistics demand.
With population growth, supply chain reshoring, and limited infill land, these markets create durable opportunities for repositioning existing industrial assets.
Case Study — Pearl River’s 12560 Reed Rd, Sugar Land
Pearl River acquired 12560 Reed Rd in Sugar Land as a classic value-add industrial opportunity. The property, with a mix of office and warehouse space, sits in a strategic submarket benefiting from Houston’s southwest growth corridor. By applying targeted upgrades and disciplined leasing, Pearl River is transforming the site into a competitive, income-producing industrial asset.
The Value of Value-Add Industrial
- E-commerce Tailwinds: Online sales continue to push demand for well-located last-mile and regional distribution space.
- Infill Scarcity: Land constraints in Texas growth corridors make repositioning existing assets the fastest path to supply.
- Resilient Cash Flow: In-place tenants provide stability while upgrades capture upside.
- Expansion Upside: Select sites allow for GLA expansion or site reconfiguration to meet evolving tenant demand.
See how this approach complements our Track Record of successful industrial repositionings and how Deal Studio enables disciplined execution.
Value-Add Industrial — FAQs
What profile of assets do you target?
Outdated warehouses and flex buildings with strong locations but functional obsolescence such as low clear heights, poor loading, or deferred maintenance.
How do you mitigate rollover risk?
We structure leases with staggered expirations, creditworthy tenants, and realistic TI/LC underwriting to maintain stability.
What improvements create the most value?
Dock upgrades, roof replacements, lighting retrofits, and site circulation improvements often provide immediate leasing velocity.
Where do you invest?
Primarily the Texas Triangle — Houston (port-driven demand), Dallas–Fort Worth (logistics hub), Austin (tech manufacturing), and San Antonio (industrial corridor).
How do you reposition office-heavy industrial?
We convert surplus office or training areas into functional warehouse/flex space, add overhead doors, and reconfigure layouts to meet logistics or light manufacturing tenant demand — as demonstrated at 12560 Reed Rd.
Have an industrial asset that needs a reset?
Discuss Value-Add Industrial