Sep 8, 2026 · 32 min · 10 segments
Shallow-bay industrial real estate is having a moment. Investor Jordan Schnitzer explains how his family firm was early to recognize the opportunity in this specialized corner of the market. He…
Jordan SchnitzerGuest.jpg?rev=e39e7f25c6dd4e6a8c9d23ae8e7fc8e6)
Spencer LevyHost.jpg?rev=e39e7f25c6dd4e6a8c9d23ae8e7fc8e6)
And I know you wanted to get into the area of talking about how the international gets very practical on a day-to-day.
Number one, it has direct impact on interest rates because it impacts inflation.
And the second thing is it impacts funds flows because a lot of foreign investors may or may not want to come here because of it.
I think what you're saying now is as the world has changed in the last few years, you're now thinking more macro than micro than perhaps you did before.
Look, I've said to my staff, irrespective of where you are politically in the spectrum, for us to be successful, we need two simple things.
One is we need consumer confidence So the consumer keeps buying the goods and services, our 3,500 industrial tenants and the other thousand retail and office tenants, they keep buying those goods and services.
And second, we need the 10 year, since we do about a billion year of financing, the 10 year to be as reasonable as possible.
I think one of the good news pieces of the 10-year, notwithstanding tremendous global noise in the last five years, is that the 10 years kind of hovered between four and four and a half.
It's a little higher than that right now, but we're optimistic it'll come down a little bit.
Look, the average interest rate in the last 50 years was more like 7%, 8%.
And yes, when interest rates fell so much, we took advantage of that and put hundreds of millions of dollars of 10-year low interest rate debt.
But what that also did, when debt was so cheap, a lot of hedge funds, a lot of people used too much money.
And I think we realize now that the tenure was too low for too long, but that's in hindsight, but it benefited lots of us.
One thing that happened that I think wasn't helpful to us is it caused huge cap rate compression.
And therefore for us, I've always felt we're competing with everybody and nobody.
And when there was so much cap rate compression, It allowed a lot of our merchant competitors, the people using third-party money, look like geniuses.
And I know you wanted to get into the area of talking about how the international gets very practical on a day-to-day.
Number one, it has direct impact on interest rates because it impacts inflation.
And the second thing is it impacts funds flows because a lot of foreign investors may or may not want to come here because of it.
I think what you're saying now is as the world has changed in the last few years, you're now thinking more macro than micro than perhaps you did before.
Look, I've said to my staff, irrespective of where you are politically in the spectrum, for us to be successful, we need two simple things.
One is we need consumer confidence So the consumer keeps buying the goods and services, our 3,500 industrial tenants and the other thousand retail and office tenants, they keep buying those goods and services.
And second, we need the 10 year, since we do about a billion year of financing, the 10 year to be as reasonable as possible.
I think one of the good news pieces of the 10-year, notwithstanding tremendous global noise in the last five years, is that the 10 years kind of hovered between four and four and a half.
It's a little higher than that right now, but we're optimistic it'll come down a little bit.
Look, the average interest rate in the last 50 years was more like 7%, 8%.
And yes, when interest rates fell so much, we took advantage of that and put hundreds of millions of dollars of 10-year low interest rate debt.
But what that also did, when debt was so cheap, a lot of hedge funds, a lot of people used too much money.
And I think we realize now that the tenure was too low for too long, but that's in hindsight, but it benefited lots of us.
One thing that happened that I think wasn't helpful to us is it caused huge cap rate compression.
And therefore for us, I've always felt we're competing with everybody and nobody.
And when there was so much cap rate compression, It allowed a lot of our merchant competitors, the people using third-party money, look like geniuses.
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