Value-add plays in industrial real estate are one of the most profitable strategies in the industrial niche. Buildings that have low rents can often be bought for a low price before adding value and boosting rents by 30% or more.
Value-add plays can involve bringing dilapidated buildings back up to code, such as fixing ADA issues, sprinkler systems, and HVAC issues. However, they can also be about maximizing the available space -- limiting common areas, providing lofted structures for office spaces, or ensuring that the maximum vertical height can be used by tenants looking to engage in warehousing.
