De-Risking BTR & Logistics Investments in U.S. Markets

About the Client

A national real estate investment and development firm approached Nexus while exploring opportunities in two emerging segments: build-to-rent (BTR) communities and urban last-mile logistics hubs. With market conditions shifting rapidly and tenant expectations evolving, they needed firsthand insight to inform their underwriting and development strategy in secondary U.S. markets.

The Challenge

Limited On-the-Ground Demand Visibility

While macroeconomic data looked favorable, the client needed sharper insights from tenants, operators, and brokers who actually understood day-to-day leasing dynamics, build cost inflation, and occupancy drivers in these new asset classes.

Emerging Categories with Few Established Benchmarks

BTR and small-bay logistics were still developing segments in many of the target cities. There was no playbook, few public comps, and most brokerage research reports didn’t go deep enough into operator-level realities.

Our Approach

Sourcing Local Operators & Stakeholders

We identified and vetted property managers, regional leasing directors, construction consultants, and tenant representatives who had hands-on experience with BTR or small-footprint logistics across the client’s focus markets. We prioritized individuals active within the last 12–24 months.

Structured Interviews on Leasing, Costs & Absorption

Each interview followed a focused script covering tenant profile shifts, rent expectations, cost-per-door analysis, permitting pain points, and absorption timelines. For logistics, we explored the mix between e-commerce versus light industrial users and what drove site selection.

Regional Comparison Snapshot

We provided a comparative summary of occupancy performance, cost headwinds, and tenant preferences across five different cities, giving the client a market-by-market lens on where to go big and where to hold back.

On-Demand Summary for Investment Committee

Our insight pack included direct quotes, short memos, and data points useful for the Investment Committee (IC) deck—built around key risks, upside potential, and local partner opportunities.

Results & Impact

With insights from real operators on the ground, the client:

• Prioritized three metros where rent premiums for BTR averaged 12–18% higher than Class B multifamily.
• Avoided committing $9M in pre-development spend in one market flagged as oversupplied with limited tenant demand.
• Identified an off-market logistics deal via an expert referral within 30 days of completing the project.
• Accelerated their go/no-go timeline by two weeks, improving internal decision-making and capital deployment.

Nexus is now embedded as a repeat partner for the firm’s new market and asset class diligence process.