In industrial investment, every acquisition decision is based on a rigorous analysis. At L3M Asset Management, we always start with our preliminary ‘Go and No-Go’ filter to quickly identify which assets align with our strategy and which present excessive structural risks.
Our Go
What we like.
1. The location
Situated close to major road links, the property should make logistics easier for our tenants and facilitate their employees’ daily commutes. A well-connected location ensures long-term appeal to tenants.
2. A versatile typology
We favour small-scale commercial or light industrial properties that are easy to re-let to a variety of tenants. Versatility is our best safeguard against rental vacancies.
3. A simple design
Ground floor or one storey maximum: simple structure, controlled costs and easy management. A simple design reduces maintenance costs and simplifies refurbishment work between tenants.
4. A dynamic region
A vibrant local economy underpins demand for rental properties. We focus on areas where industrial and craft-based activity is underpinned by a strong and diverse labour market.
Our No-Go
What’s holding us back.
1. Too many offices
An excessive proportion of office space reduces the building’s versatility and makes it more difficult to re-let, particularly in industrial areas. The more specialised the fit-out, the higher the risk of vacancy between two tenants.
2. A specialised building
A single-purpose building that is too niche – such as one used exclusively as a laboratory – creates a heavy reliance on a single type of tenant and proves difficult to repurpose should that tenant leave.
3. Too many storeys
An excessive number of storeys does not generally meet the needs of an industrial business, particularly those we are targeting. It also leads to operational complexity and increased costs: lifts, goods access, and the management of a greater number of communal areas.
4. A location on the outskirts
A site that is too isolated from the local economy and major transport routes reduces its appeal to potential tenants and diminishes the asset’s liquidity in the long term.
In conclusion
These criteria are our guiding principles when assessing an opportunity. A resilient industrial asset must be able to accommodate a new tenant without the need for major refurbishment and must not rely on a single type of use to retain its value.
Maxime Veysset, Partner
If your asset meets our criteria, or if you would simply like to discuss it, we would be delighted to talk to you. Our team analyses every opportunity carefully and promptly.