Prologis

And then you've just seen, you know, really over, I would say the last, I'd say 15 years, it's really become The market's become a lot more institutionalized.

Like I said, it was a lot of local owners where then, I remember when A&B, before they became Prologis, it was one of the big owners.

And I remember the big shockwave, it was when they did vacancy prep, when they would clean it and white box it and dress it up for a show.

And people were like, what? So then everyone kind of followed suit.

Ultimately, I left before it was finalized.

I was going to say, you hated it so much, you left and went to Prologis.

Right.

Well, it was a step before that.

Um, and then I was involved in a project called the shops at Pembroke gardens, which is a big open air retail project that I sourced the land and was able to sort of, uh, you know, sort of get that, you know, sort of entitled and get that out of the ground.

So, Um, you know, at, at that point in time, I, you know, I sort of look back and say, you know, there was a fairly decent resume of, of, of office buildings that I had been able to sort of, you know, be, you know, uh, you know, the good fortune to be involved in developing and, and develop a good reputation around, you know, sort of the office sector.

Um, And then, you know, Prologis, you know, sort of came into my life because they were looking to hire, you know, somebody locally here in South Florida.

You know, sort of headhunter calls you and says, hey, we're looking for somebody, et cetera.

Well, so our sort of niche, our business, our theory is that you can do well in smaller industrial deals because the larger funds in industrial are very, very institutional.

So it's all the biggest players in the real estate business, Blackstone, Goldman, Prologis, and it's just the biggest of the big.

And I think the reason that happens because, and we've sort of found this out, we had to be out there raising money to do our deals.

And you find out pretty quickly that the fundraising market is really controlled by the gatekeepers and gatekeepers are very, very risk averse.

And so to invest in a small company like ours or anybody, any other small company, and then, and then if we were to fail and, that guy probably gets fired.

So if he invests in Prologis, he's not going to get fired.

If Prologis doesn't do well, if Blackstone doesn't do well, he's not going to get fired.

And all that means is that just more and more money just funnels into the largest players where you wake up and it's like a $12 billion fund to go out and buy industrial real estate.

All right, Parth Pethani of Prologis, Director of Strategic Advisory and Engineering.

Thank you for joining me.

It's been two years since we talked on the pod last, and thanks for hosting me when I think it was ProMat.

So a lot of nights away from the family.

But I think the biggest success has been, I think, for the last two years, we definitely, within the essentials business, we have been meeting our numbers, exceeding our numbers, which is great.

A lot of customer conversations are now happening beyond just hey we need uh this size of building we are our conversations have evolved so if you think about a soft target or soft metric that we are tracking internally is like customers are actually coming to us like hey what should i do about my supply chain from a network perspective from the design perspective are we ready for automation is my building ready for automation uh do i have the right technology so conversations have evolved uh over the last two years i think That's something I'm very excited with in Prologis overall because I think that's something Hamid valued in Essentials when he ideated Essentials a few years ago.

It's like, hey, how can we help our customers beyond, of course, helping with the real estate and amazing experience around real estate, but can we help them with the supply chain? So I think that's been a fun ride.

And I think under Marv's leadership, I think things have really kicked in with a lot of conversations in a lot of markets.

record profits, and then they're also doing things that I would do.

If I had that type of capital, I would be like, oh yeah, let me buy Prologis.

Yeah, that sounds good.

Let me buy ACC.