Portal Warehousing

***Small Bay Sundays*** - SBS Collab with Nathaniel Neman Two-Phase Mark-to-Market Strategy Last week’s Small Bay Summit felt like a milestone moment for our industry. For the first time, many of the most active small bay operators, investors, and lenders were all in one room, sharing real-time insights in a sector that remains highly fragmented. The ability to exchange perspectives directly with brokers, owners, and capital providers revealed how professionals are viewing small bay markets across the country… information that simply isn’t available online. It validated what many of us have believed for years: small bay industrial is the next institutional asset class. One of the standout discussions came from BKM Capital Partners Brett Turner, our keynote speaker for the event and one of the leading voices in the small bay industrial space. BKM has built one of the most recognized platforms in the country, aggregating and institutionalizing small bay portfolios through a disciplined, hands-on approach to operations and value creation. During his presentation, Brett shared an idea that resonated with both of us: an approach to mark-to-market in two phases. After the session, Nat and I discussed how this concept could shape the way we think about portfolio growth. When rents are significantly below market, BKM doesn’t immediately push to full market levels. Instead, they execute mark-to-market in two phases. It is a small shift in strategy, but an important one. When speaking with brokers, you can come across a deal with as much as 50 percent mark-to-market upside. On paper, that sounds like a home run. But in practice, such a sharp increase can cause disruption. Small bay tenants are typically local service businesses that value stability and predictability, and sudden rent spikes can lead to turnover and downtime. The two-phase approach creates balance: • Phase 1: A moderate rent increase that starts closing the gap while keeping occupancy strong. • Phase 2: A full market reset once improvements are complete and the property’s value proposition has been elevated. This method allows owners to capture upside while maintaining occupancy and long-term tenant relationships. It supports consistent portfolio growth and smoother stabilization. For those building small bay platforms, it is a reminder that how you grow NOI can matter just as much as how fast you grow it. Thoughtful sequencing builds lasting value. #SmallBayIndustrial #IndustrialRealEstate #ValueAdd #LeasingStrategy #MarkToMarket #SmallBaySummit Doors & Spaces Industrial Brian Whitmer Small Bay Summit Small Bay List Nathaniel Neman Portal Warehousing

We're excited to announce to recent closing of 3200 Gateway Centre Blvd in the Raleigh-Durham MSA, just minutes from RDU International Airport and adjacent to Research Triangle Park! The subject property will undergo a conversion from office to warehouse, consisting primarily of interior demolition and the addition of loading docks. Once open Portal Raleigh will be home to over 70 different businesses. Thank you to our good friends at JLL, Michael Scarnato & Daniel Flynn, for bringing us this off-market deal. Thank you to Capstone Equities and EquityMultiple for partnering with us on the transaction. Please reach out to Nathaniel Neman for more information or to learn about our acquisition criteria. We are actively seeking new expansion opportunities.

Reimagining the Warehouse.

At Portal Warehousing, we’re dedicated to creating an exceptional experience for our tenants. Our facilities are designed to simplify your operations with features like easy shipping options with major carriers, spacious delivery bays, and convenient moving equipment, such as dollies and pallet jacks. Whether you’re scaling your operations or optimizing your logistics, we’re here to provide the support you need to succeed. Join the growing community of businesses who trust Portal as their reliable partner. #PortalWarehousing #CustomerTestimonial #HappyClients #Warehouse #EntrepreneurLife #BusinessGrowth #ProfessionalSpace #Business

NOW OPEN: Minneapolis, MN! We’re excited to announce our newest addition to the Portal Warehousing family in Minneapolis! This vibrant city, known for its thriving business community and strategic location, is the perfect place for businesses looking to grow and succeed. Our new facility offers secure, flexible spaces designed to meet the unique needs of every entrepreneur. With state-of-the-art amenities and the support of our dedicated team, Portal in Minneapolis is here to help you achieve your goals. Come and see why businesses across the country choose Portal for their warehousing and workspace solutions! #PortalWarehousing #BusinessSolutions #Warehouse #BusinessGrowth #ProfessionalSpace #Business #Expansion

The past month at Portal Warehousing has been incredibly productive! We’ve opened doors at two buildings in Orlando & Minneapolis. In Orlando, we partnered with Capstone Equities, Seastone Capital, and EquityMultiple to open our largest space yet, an 85k SF warehouse in the infill 33rd Street industrial park. We opened to very strong leasing demand, surpassing our internal pre-leasing targets. The Minneapolis property was a unique scenario we identified with Hempel Real Estate, which was a 2nd Gen micro-warehousing facility. Our current deal pipeline remains robust, and we always looking to connect with industrial real estate brokers & investors. Please reach out to Nathaniel Neman directly with any real estate related inquiries.

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A real estate investment strategy was shared with me yesterday that I thought was interesting. The concept is called “Co-Warehousing” and it’s similar to co-working office space. They’re buying large industrial warehouses with high vacancy and then breaking up the space into 200 – 2,000 SF “units” with 10-foot modular walls and leasing those to smaller e-commerce businesses, wholesalers, local services, artists, etc. The common office space and loading areas are all shared. From a tenant’s perspective, there’s not much friction because they’re simply signing a 6-12 month lease and paying an all-inclusive rate with no TI’s needed. The strategy seems to have a lot of demand because they’re maintaining 95% occupancy with a strong NOI premium when compared to leasing to a single tenant. If you’re interested in learning more, the company is called Portal Warehousing and you can reach out to Nathaniel Neman. I’ll add a link to his industrial newsletter in the comments as well. FYI, this isn’t a sponsored post.  I just thought it was interesting and worth sharing.