Rexford remains exclusively focused on industrial real estate, an asset class we believe competes favorably against other asset types over the long-term pursuit of favorable risk-adjusted returns:
- The income generated by industrial real estate assets in Rexford’s target markets tends to be relatively stable and predictable over time, as compared to other asset types such as retail and office.
- Rexford targets large, supply constrained, fragmented markets such as Southern California, which itself is comprised of nearly two billion square feet of industrial space that consistently demonstrates the lowest vacancy rates and highest rental rates in the nation.
- Rexford focuses on industrial markets where substantial barriers to entry exist for others to deliver competing industrial product due to a scarcity of developable land and the costs associated with building new ground up developments.
Poised to Seize Diverse Opportunities
Rexford’s exclusive focus on industrial real estate, extensive operating history and industry-wide relationships enables the company to access and capitalize upon investment opportunities that are not easily accessed by less-focused or less-experienced industrial real estate investors.
Conservative, Entrepreneurial Philosophy Drives Favorable Risk-Adjusted Returns
Rexford adheres to a conservative underwriting and acquisition philosophy, driven by a focus on:
- Acquisitions of well-located properties purchased at or below replacement costs;
- Supply constrained markets, where supply is often diminishing as developers convert existing industrial to other uses such as residential and office; and,
- Opportunities to increase the cash-flow generating capability of the real estate.
Doing Good While Doing Well
Rexford believes that community development is essential to the overall success of our business and the long-term sustainability and well-being of our communities. Rexford's primary focus on re-developing industrial properties located in urban infill markets often leads to the conversion of blighted, unsafe and under-utilized industrial real estate into highly functional, productive industrial business parks. Through this work, essential jobs are created for people of all levels of skills drawing from within and around these neighborhoods serving an exceptionally diverse array of distribution, manufacturing, light industrial, technology, food service, bioscience, commercial/retail/wholesale services and related businesses. Rexford is positioned as one of the very few real estate investment firms focused on preserving and improving industrial use real estate for continued industrial use. This focus benefits Rexford's target communities by helping to stem the loss of industrial use real estate, which is otherwise diminishing as developers seek to convert such land away from industrial use, depriving those communities of essential jobs and of the balanced local economy required for long-term sustainability and smart growth. Further, blighted properties that might have represented unsafe destinations facilitating a variety of illicit activities are converted to thriving centers of commerce. At Rexford, this is good business, as we are able to discern and create value where others might have overlooked or chosen not to focus on such opportunities. We, at Rexford, are thankful to the many private and public entities and relationships that make this work possible.