u/jsxgd

We all know location is a critical factor in CRE and that access to the highway network is particularly important for warehouses and distribution centers.

The question: would you buy a WH/DC that is 7 miles away from nearest highway ramp? Assuming that the route from the property to the ramp is workable for trucks, you are buying at a basis that allows you to target a rent well below what more optimally located competitor properties are asking, and you can underwrite significant downtime (1-2 years).

Of course every deal is different, but I’m curious if this is a binary thing for some investors or if you’re more willing to consider it if the basis is right.