Bits And Atoms Operator

RE investor & operator. Writing about acquisitions, business ownership, & capital allocation

There’s always a playbook. Either someone else’s or your own

[Bits And Atoms Operator @BitsAndAtomsOp]

How to close a $100 million deal:

Constant problem-solving.

You'll work with a dozen people – lawyers, consultants, and brokers, to name a few. Most of them get paid whether or not the deal closes. You don't.

Put together a primer on how to actually get one done:
–> Sourcing & bidding
–> LOI to PSA
–> Diligence
–> Debt
–> Closing

https://t.co/YWc99qYj86

[Bits And Atoms Operator @BitsAndAtomsOp]

The market for single-tenant NNN deals has been softer the past few years given higher interest rates. Since there’s no lease-up play, it’s effectively clipping a bond with the added risk of the underlying tenant’s ability to continue paying rent and potential capex.

If you’re going to do a build/remodel sale-leaseback type structure, I’d recommend getting a top local sale-leaseback broker involved early. They know the real buyer pool and will help you avoid over-setting rent in the pre-sale lease. Buyers will underwrite to market, so an inflated rent will cost you cash each month without the benefit on the sale

[Bits And Atoms Operator @BitsAndAtomsOp]

According to CoStar, data center-adjacent occupier leasing activity has doubled from 3% to 6% since 2020 for properties within 5 miles of data center facilities.

Very much the “barnacle on the whale” dynamic, with many providers riding the coattails of the DC boom.

DFW leads the pack with 10M SF leased by data center-adjacent groups since 2025

[Bits And Atoms Operator @BitsAndAtomsOp]

@arjunarora_ Same dynamic is playing out in PE. Institutional shops are going downmarket resulting in more competitive processes and increased multiples

[Bits And Atoms Operator @BitsAndAtomsOp]

@carrymonkey @shawngorham I believe compared to H2 2025. For deals over $25M, sales volume peaked in the $13B range annually in 21/22. 5-yr avg is over $9B annually, and if you annualized H1 stats, you’re pretty close to that. Noticeable rebound from the past couple years

[Bits And Atoms Operator @BitsAndAtomsOp]

@moseskagan How do you like AppFolio for your industrial assets?

[Bits And Atoms Operator @BitsAndAtomsOp]

In my opinion, the concern is more so outsourcing critical thinking. If analysts aren’t getting the reps to actively think about why a deal may be good or bad, that will in turn affect their long-term growth at mid-level and above. Important to have AI assist as opposed to being a crutch

[Bits And Atoms Operator @BitsAndAtomsOp]

@shawngorham Definitely feels like it’s been one of the slower leasing markets generally imo but I’m optimistic activity will pick up. I was surprised to see the large increase in sales activity

[Bits And Atoms Operator @BitsAndAtomsOp]

I’ve seen both across various markets. If LL oversees the work, they’ll typically apply the credit to the work and T will pay remainder, if any, and an expiry would rarely come into play. If T oversees the work, the lease will usually have a TIA expiration (usually 12-18 months after lease signing)

[Bits And Atoms Operator @BitsAndAtomsOp]

@moseskagan White-boxing vacant space can dramatically improve leasing velocity, especially for small and mid-bay industrial. Paint, carpet, and cleanup go a long way

[Bits And Atoms Operator @BitsAndAtomsOp]

@CRELeasingLawTX As a buyer, I always try to negotiate estoppel distribution at PSA execution or within a specified time period shortly thereafter to get ahead of it. Have seen way too many bigger tenants throw their weight around closer to closing with estoppels!

[Bits And Atoms Operator @BitsAndAtomsOp]

@GenZMultifamily Agreed. One of the most important parts of diligence to uncover things that don’t show up in a model. Also helps conceptualize the levers to pull much more

[Bits And Atoms Operator @BitsAndAtomsOp]

@blueprintsmb22 When did you first start noticing it? Feels like late 20s / early 30s is where the effects of compounding decisions really start to show up on the professional side

[Bits And Atoms Operator @BitsAndAtomsOp]

As the old adage goes, "Time kills all deals."

There will always be issues that arise during diligence that can drag things out. The key to keeping it all on track is efficient problem-solving.

The quickest way to do that is to ask yourself the following four questions:

1. What do I know?
2. What do I need to find out?
3. What is the potential risk?
4. What are the potential paths forward?

And then get on the phone with whoever can help you solve them.