Small-Bay and Multi-Tenant Industrial Investing

Episode guide

Written by The Real Estate Investing Club from the recording’s transcript and show notes (Nov 9, 2026). It summarizes what Irwin Boris said on the show; it is not a transcript.

CPA and longtime lender Irwin Boris tells Gabe Petersen why he shifted from multifamily to multi-tenant industrial and small-bay flex buildings after rising insurance and hidden repair costs. He covers how he finds deals through brokers and owners, the cap rates and lease terms he looks for, where he buys, and why he avoids most single-tenant buildings. He also gives his view on tariffs, financing and buying during uncertainty.

Questions this episode answers

Why would an investor choose multi-tenant industrial over multifamily?

What cap rates are small-bay and multi-tenant industrial deals trading at?

How do you find off-market industrial properties?

What makes a single-tenant industrial building less risky?

How do you get started investing in small-bay industrial?

What Irwin shared

Irwin says he watched insurance on a Virginia multifamily property rise from $285 to $1,100 per unit in about a year and a half, which pushed him toward industrial.

He looks for deals that distribute at least 8% in the first year and says revenue compounding around 3% a year drives the value.

Irwin says he is seeing multi-tenant deals north of an 8 cap on in-place income, sometimes 9s and 10s, and is comfortable buying with only two or three years of lease term left.

He prefers buildings with roughly 8 to 15 tenants so turnover never leaves the mortgage uncovered, and he requires positive cash flow at closing.

Irwin says many buildings he has bought cost under $100 a square foot, while new concrete or brick construction runs about $150 to $200 a square foot before land.

He only buys single-tenant buildings when the tenant is tied to the site, such as a 500-employee plant that would lose its workforce if it moved.

Irwin says about 10% of his deals come directly from owners; most are early broker looks or deals that fell out of contract.

Chapters (audio; approximate times)

Introduction

From CPA to lender and operator

Why he left multifamily for industrial

Single-tenant risk and workforce-tied tenants

Finding deals through brokers and owners

Cap rates and lease terms

Locations, building size and price range

Getting started, tenant mix and value-add

Market outlook: tariffs and financing

Quick questions and lessons learned

Go deeper on this site

Show notes

The anti-multifamily strategy: why industrial is king

In this eye-opening episode of The Real Estate Investing Club, I sit down with Irwin Boris, CPA and real estate veteran who cracked the code on boring-but-profitable industrial investing. After dealing with underground water line disasters and insurance cost tripling in multifamily, Irwin pivoted to an asset class that compounds revenue at 3% annually while protecting against maintenance nightmares.

Insider secrets: how to score 8-9% cap rates today

While everyone chases multifamily, Irwin reveals how he's finding industrial deals with 8-9% cap rates in secondary markets. His strategy? Look for buildings under $100 per square foot when replacement cost runs $150-200 PSF. Target properties with 8-15 tenants to ensure cash flow continues even during turnover. The key insight: "Make your money on the buy" by being patient and letting deals chase you.

The workforce stickiness advantage

One fascinating strategy Irwin shares involves single-tenant deals tied to local workforce. Example: A 500-employee facility running three shifts daily can't move more than a few miles without losing staff. This creates incredible lease security that justifies paying slightly below market rent in exchange for workforce retention.

Small bay secrets: where to find these gems

Small bay properties remain hidden in plain sight across America. Look for buildings with multiple roll-up doors housing plumbers, electricians, and even unique tenants like tropical fish farms and nuclear pharmacies. These properties offer higher returns than traditional office while requiring less intensive management than multifamily.

Market timing strategy: buy during uncertainty

With major players like Blackstone and Clarion Partners signaling now as prime buying time amid tariff uncertainty, Irwin explains why the next 2-4 years offer exceptional opportunities. While new development slows and financing tightens, buyers with cash can capitalize on motivated sellers and reduced competition.

The CPA advantage in real estate

Irwin credits his accounting background for deal-making success, sharing how he educated bank underwriters on reading tax returns properly. Understanding depreciation, reading financial statements, and properly vetting tenant financials gives him significant edge in deal analysis and negotiation.

From CPA to operator: touching every asset class

After starting in accounting, Irwin gained invaluable experience working 15+ years as a lender and for real estate operators across multifamily, office, retail, hotel, and industrial sectors. This comprehensive understanding allows him to spot value others miss and structure deals properly from day one.

Real estate is relationships: the investor partner model

Breaking industry norms, Irwin personally handles investor relations, comparing college choices with investors' kids and discussing vacations. This relationship-first approach creates loyal partnerships and repeat investors who trust his expertise. His philosophy: "I like to cultivate long-term friendships with our investors - we treat them as partners."

Connect with Irwin Boris on LinkedIn, Instagram, or Facebook to explore industrial and small bay investment opportunities. Schedule a call directly from his calendar link on LinkedIn!

Irwin Boris: Master the "Boring" Industrial Real Estate That Compounds 8%+ Returns