Net lease

And even in the last five years, there's a ton of institutional capital pouring into the net lease space from big money market, money managers that are looking to deploy capital in a huge way.

There's now, I think, 17 publicly traded REITs that are all focused on net lease properties.

And then those money managers are big names like Apollo, TPG, you name it, Alliance, Bernstein, Blackstone, all now have Netlease platforms, JP Morgan.

So there's a lot of institutional capital.

There's a lot more advisors, like you were saying.

On this episode, we venture beyond the headlines, deeper into the real estate side of the manufacturing business, digging into a relatively niche but growing form of leasing and investing in these industrial assets.

To me, what makes NetLease most interesting and the best investment is actually investing in facilities that are critical to the ongoing operations of the tenant.

That's Gordon Whiting, partner, co-founder, and co-head of TPG NetLease, a longtime leader in industrial.

He originally founded Angelo Gordon's NetLease strategy in 2004, and three years ago, they sold the business to TPG, where the practice now manages around $2.3 billion worth of assets.

We've had more rental increase gains and it's outperformed from a performance standpoint any other aspect of industrial over the last five years.

And that's Will Pike, a returning guest who's the president of CBRE's U.S. Industrial and Logistics Capital Markets and leader of CBRE National Partners, running the company's net lease property group and corporate capital markets practice.

And with a less than investment grade company, we can just charge more in rent.

And typically, there are fewer other buyers in that space, which you'd much rather have a less competitive space to play in.

The managers, allocators, and ideas worth coming back to.

Net lease is usually described as the most defensive quarter of commercial real estate.

Bond-like, passive, and priced accordingly.

My guest today builds his from the ground up and argues that's exactly why his building should be worth more when the lease is run out, not less.

Jim Coleman is founder and CEO of Elm Tree Funds, a net lease real estate firm he started in 2011, and it built roughly to $7 billion across the 122 properties in 31 states.

Last year, Elm Tree became part of BlockRock, where Jim continues to lead its investment strategies.

He spent more than four decades in commercial real estate, first as a developer, then running a net lease fund he founded in 2003, later sold to a publicly traded REIT.

We talk about why he thinks most managers in the space are retrading the same bricks and mortar while he's out building for the next 40 years, how Elm Tree takes on construction without taking the risk, and what the BlockRock deal changes and what it deliberately doesn't.