MIAMI—With so much capital flowing into the commercial real estate market, capital providers need to differentiate themselves from the pack. Globest.com aught up with Jack Fraker, managing director and vice chairman of CBRE, to get his thoughts on how to do that in part one of this exclusive series. Fraker will be on hand at RealShare Industrial in Miami on Nov. 4 and 5 to discuss these and other topics more in-depth.

GlobeSt.com: How can capital providers differentiate themselves in a competitive market?

Fraker: To differentiate themselves in a competitive market, capital providers can do a number of things: lower return thresholds; more favorable promotes; accept full portfolios, as opposed to cherry-picking assets—buyers accept responsibility for selling the properties they do not want post-closing); hard money on day one; continue to exclude any financing contingencies—closing all cash; flexibility on loan assumptions, as necessary; accept seller PSA comments “as is” with no negotiations; and shorter due diligence and closing periods.

GlobeSt.com: Where is the money for industrial developments coming from?

Fraker: Institutional investors—pension fund advisors and private equity—public REITs and opportunity funds are investing in industrial developments. However, the investor profile has expanded beyond just the traditional investor base of public REITS, pension fund advisors, funds, non-traded REITS, and life insurance companies to include foreign investors and major private equity firms. Given the nominal PSF price of industrial real estate versus other asset classes, it is difficult for investors to aggregate a critical mass of industrial real estate holdings. As a result, the portfolio premium has returned for large-scale multi-city portfolios.