CHICAGO—Consumers' escalating demand for the quick delivery of products they purchase online has begun transforming industrial real estate, and local executive Cary Goldman believes the time is right to launch a venture dedicated to the creation of “last-mile” distribution facilities. Timber Hill Group LLC, his new private equity firm, will target value-add product in major markets throughout the Midwest, investing in properties that will become core components of the global supply chain.

“The properties I'm considering are probably a bit overlooked,” he tells GlobeSt.com. Huge class A buildings occupied by the likes of Amazon have popped up all over the US, but Timber Hill will acquire smaller buildings and land parcels along major transportation arteries that can accommodate several tenants that need between 30,000 to 65,000 square feet of logistics space. “It's a different niche, and not a lot of people are doing it. Some tenants have been stuck in 18' clear buildings for 20 years.”

Aaron Ahlburn, a senior vice president and director of research for JLL, recently told GlobeSt.com that at this point in the business cycle, it's the many smaller and mid-sized businesses that most want to expand operations. That's a big change from a few years ago, when larger companies were the ones taking risks.