Each of these six locations is critical for the distribution of goods, the company says on its website. “They are all large population centers and have well-established transportation infrastructure--seaports, airports, highways and railways. But what makes these locations particularly attractive is the limit to new, competing properties. Available land is scarce and physical and political barriers to new development are steep.”

Terreno goes on to say that now is a good time to buy industrial properties. “Property values are down significantly from 2007’s peak levels for two important reasons: declines in occupancy and rent growth as tenants responded to macroeconomic trends and pressure on overleveraged owners to sell property in reaction to reduced capital availability,” the company relates on its website. “These events curbed development of new industrial supply over the past few years, creating an environment for occupancy improvement and rent growth as the economy improves.

The non-traded REIT also says that it enters the market without legacy issues--such as overleveraged properties, significant vacancies or currently unproductive land issues--and has the capital to acquire high quality industrial assets at compelling current returns and discounts to both replacement cost and valuations from recent years.

According to Terreno, there are several asset must-haves: functional and flexible building layouts that can be modified to accommodate single and multiple tenants; pricing at significant discount to the replacement cost of the property; potential for enhanced return through re-tenanting or operational improvements; and opportunity for property conversion to higher and better uses over time.