Flex Storage, Small Bay Industrial, and Patient Growth with Conner Thomas

Conner Thomas calls his target properties “industrial apartments.” The idea comes from a mix of limited new supply and demand from many different types of local businesses.

At Greenwich Street Capital, Conner focuses on service industrial properties, including small bay industrial and flex storage. These properties sit between traditional self storage and larger industrial buildings.

Conner explains why new supply can be difficult to build in infill locations. He also talks about the different groups that use these spaces, from contractors and small businesses to people who need more storage than a garage can provide.

The conversation also covers how his background in institutional acquisitions shaped his approach. Conner looks at each property through a risk adjusted lens. He focuses on basis, stabilized yield, conservative leverage, and what could go wrong.

One example is a small bay industrial property in Santa Clara near NVIDIA. Greenwich Street Capital originally expected a medium term hold. After signing leases at rents 20% to 30% above underwriting, the company began considering an earlier sale.

Key Topics and Takeaways

• Why Conner describes service industrial as “industrial apartments”
• Why limited new supply is part of the investment thesis
• How small businesses and service professionals create a broad tenant base
• Why Greenwich Street Capital generally stays below 60% to 65% leverage
• What happened with the Santa Clara small bay industrial deal
• Why Conner discusses risks with investors before focusing on projected returns

Guest Information

Conner Thomas is the founder of Greenwich Street Capital.

His earlier career focused on acquisitions. He mentioned working at Morgan Stanley and DWS, where separate teams handled capital raising.

Greenwich Street Capital invests in service industrial properties, including flex storage and small bay industrial.

Website: greenwichstreetcap.com

Email as spoken in the transcript: Cthomas at Greenwich Street Cap

The full email domain ending was not clearly stated in the transcript.

Call to Action

Visit greenwichstreetcap.com to learn more about Greenwich Street Capital.

Conner said he is interested in connecting with people who want to learn more about investing with the company.

He is also interested in seeing service industrial and flex storage properties that may fit the company's strategy.