Industrial Insights

Justin Smith
  • 5.0 (5)
  • Investing
  • Updated Weekly

Industrial Insights is a podcast that highlights the market dynamics, high level strategies, and in the trenches tactics for tenants and owners of industrial real estate. Each episode is designed to take hard fought wisdom from practitioners and break it down into insights that can drive better commercial real estate decision making. The host, Justin Smith, shares his experiences from 16 years in the business and brings in industry experts to discuss critical aspects of successful industrial projects.

  1. May 20

    Operations Consulting from Shop Floor to Boardroom with Gabriel Rodrigues of FALCONI

    Gabriel Rodrigues is a Partner at FALCONI, the largest management consulting firm in Brazil, now operating across North America. He moved from Brazil to Chicago in 2018 to build their U.S. practice from scratch and was recently named one of the Top 25 Supply Chain Consultants in the country. In this conversation, Gabriel breaks down what he sees when he walks into a manufacturing plant or warehouse, why most companies are not ready for the technology they are buying, and what industrial real estate operators need to understand about how their buildings affect tenant operations.   Key Takeaways Fix the process before you buy the tech. If your operations are chaotic, technology will only make that chaos more expensive. Automation is now a labor strategy, not a cost strategy. Companies are lowering ROI thresholds because the alternative is not having workers at all. Space optimization comes before network changes. Most companies have far more capacity in their existing facilities than they realize. The building is part of the talent strategy. Parking, security, lighting, and amenities directly affect whether workers show up. Landlords are sitting on a platform opportunity. Operational services like layout analysis, energy optimization, and data integration can be offered to tenants at scale. The real AI use cases in operations right now: predictive maintenance, machine vision, automated materials handling, and process control. Brazilian operational discipline, forged in a harder environment, is now being applied to American companies that never had to be that rigorous.   Chapters 02:15 - Growing up in Itajuba, Brazil and the path to engineering 06:30 - What is FALCONI and how it started 09:45 - Vicente Falconi, Toyota, and bringing TQC to Brazil 12:07 - "Changing the wheel while the car is running" 15:20 - How FALCONI embeds inside companies vs. traditional consulting 18:40 - The move to the United States and building the practice from zero 22:10 - What surprised him about American manufacturing 25:30 - PDCA methodology explained 28:45 - Change management on the shop floor 30:06 - "The definition of insanity" and noise propagation 33:31 - "Technology will only exacerbate your chaos" 35:22 - The ROI question most companies skip 38:46 - Automation for resilience, not savings 41:30 - How supply chain network design drives real estate decisions 44:46 - The parking lot story 47:15 - Space optimization before expansion 49:28 - Landlords as service providers 51:05 - Where to find Gabriel and FALCONI   Episode Resources Connect with Gabriel Rodrigues — Partner | Director Operations practices - FALCONI US https://www.linkedin.com/in/gabriel-alves-rodrigues-731a762b/ https://www.linkedin.com/company/falconi-us/ Connect with Justin Smith, SIOR - Lee & Associates Irvine https://smithcre.com/  jbsmith@leeirvine.com  https://www.linkedin.com/in/justinbsmith/  949.400.4786

    44 min

  2. May 13

    Orange County Industrial Real Estate Market Update Q1 2026 with Jay Tanjuan of Scannell Properties & Sean Ward of CBRE

    Three Southern California industrial veterans — Jay Tanjuan of Scannell Properties, Sean Ward of CBRE, and host Justin Smith of Lee & Associates — sit down to break down where the Orange County industrial market actually sits in Q1 2026. Each has spent more than two decades in SoCal industrial, riding every cycle from the early 2000s through the COVID boom and the current reset. The conversation lands on a few specific takeaways. Tenants didn't leave OC — they renegotiated. Advanced manufacturing (defense, aerospace, AI, energy, robotics) is rapidly becoming the dominant demand story. Three site attributes now drive every meaningful lease: proximity to labor, power, and parking. Land values are down 60 to 70 percent from the 2022 peak, which means the underwriting math actually works for the first time in two years. And only 2.7% of OC's existing industrial inventory is 36' clear or better — making the right kind of building genuinely scarce. Plus: the port-volumes-vs-vacancy disconnect, what landlords now demand to underwrite startup credit, where institutional capital is finally returning, Scannell's 10,000-amp project in Garden Grove, and bold predictions for humanoid robots in warehouses by 2027 — or sooner.   Key Takeaways Advanced manufacturing is now the dominant OC industrial demand story. Defense, aerospace, AI, energy, and robotics tenants are signing the biggest leases in the market. Velar Atomics — a small modular nuclear reactor company with fewer than 50 employees — just leased 500,000 SF. The Three Ps drive every advanced manufacturing site decision: Labor, Power, Parking. These tenants are paying north of $2 NNN to be in the right pocket of OC or LA — and they won't compromise on any of the three. Only 2.7% of Orange County industrial inventory is 36' clear or higher. Modern-spec product is genuinely scarce, and the buildings that fit what these tenants need are getting harder to find. Land values are down 60-70% from the 2022 peak. The underwriting math actually works for the first time in two years. New development sites are coming to market weekly as other groups exit projects. The five-year renewal wave is hitting now. Tenants who signed in 2020-2022 are deciding to grow, contract, or stay flat — and that decision will shape OC absorption over the next 18 months. Power is the new constraint. Scannell's Garden Grove project delivers with 10,000 amps of power — increasingly the only spec advanced manufacturing tenants will sign for. Jay Tanjuan's call: "Now's the time to take action." Lease rates have stabilized, basis is down, the right kind of building is scarce, and capital is finally starting to lean in.   Chapters 00:41 Jay Tanjuan & Sean Ward: 20+ years in SoCal industrial 03:44 The market today vs. 12-18 months ago 04:13 Liberation Day 2025 and the slowdown  06:00 Underwriting: a flurry of new development deals 08:25 Land values down 60-70% from the 2022 peak 09:00 The dominant story: Advanced Manufacturing 09:46 Velar Atomics: 50 employees, 500,000 SF 12:17 The Three Ps — Labor, Power, Parking 13:00 Record port volumes, rising vacancy: the disconnect 16:00 The 3PL spot market and excess capacity 17:21 Right-sizing the 2020-2022 build wave 18:28 The five-year renewal wave hitting now 20:00 Only 2.7% of OC industrial is 36' clear or higher 21:54 COVID-era: rents up 5% a month 23:39 "COVID gave landlords a PhD in raising rent" 25:33 Talent, AI, and why people still want to be in OC 26:30 The capital intensity of advanced manufacturing tenants 27:22 Tracking defense contractor announcements as a leading indicator 29:15 Scannell's Garden Grove project: 10,000 amps of power 29:54 Underwriting defense contractor credit 32:54 The EV tenant deal: a year of prepaid rent 33:47 LP capital cautiousness on development 35:33 "We bottomed out" — Jay's call on OC lease rates 36:45 "Site has to have a story" — Jay's underwriting framework 40:37 Rent disparity by tenant type: $2+ NNN vs. market 42:32 Power generation creativity: modular nuclear, on-site generation 44:00 AI, robots, and the next cycle 45:10 Hot take: When does a humanoid robot show up in a warehouse?  47:30 From dots on tour-book maps to self-driving cars   Episode Resources Connect with Jay Tanjuan, CCIM — Director of Development, Southern California, Scannell Properties https://www.linkedin.com/in/jaytanjuan/ https://www.linkedin.com/company/scannell-properties/ https://scannellproperties.com/  Connect with Sean Ward — Executive Vice President, CBRE | SoCal Industrial https://www.linkedin.com/in/sean-ward-ab616a8/ https://www.linkedin.com/company/cbre/ https://www.cbre.com/  Connect with Justin Smith, SIOR - Lee & Associates Irvine https://smithcre.com/  jbsmith@leeirvine.com  https://www.linkedin.com/in/justinbsmith/  949.400.4786

    49 min

  3. May 11

    Bringing Data Mastery to Shipping with Hannah Testani of Intelligent Audit

    Justin Smith interviews Hannah Testani of Intelligent Audit to explore how data-driven strategies and AI are transforming transportation spend management, supply chain resilience, and logistics optimization amidst global disruptions. Hannah and Justin dig into why most companies are operating as firefighters instead of engineers, what they're getting wrong without knowing it, where the parcel carrier market is headed, and why AI is already doing for supply chain what credit card fraud detection did for banking.     Key Topics Data-driven transportation optimization Impact of global disruptions on logistics AI and automation in supply chain management   Chapters 02:42 - Understanding the Role of Intelligent Audit 05:22 - Common Challenges in Supply Chain Management 08:11 - The Impact of Freight Markets on Shipping 10:57 - Navigating Carrier Relationships and Costs 13:27 - Innovative Solutions for Supply Chain Efficiency 16:15 - The Complexity of Invoicing and Data Management 21:18 - Continuous Improvement in Data Management 23:55 - The Role of AI in Logistics 27:27 - AI as a Tool for Automation 29:57 - Embracing AI in the Workplace 31:59 - Navigating Inbound vs Outbound Cargo 39:16 - Future Trends in Logistics and Automation   Episode Resources Connect with Hannah Testani https://www.linkedin.com/in/hannah-testani-4bb77715/ https://www.linkedin.com/company/intelligent-audit/ https://www.intelligentaudit.com/  Connect with Justin Smith https://smithcre.com/  jbsmith@leeirvine.com   https://www.linkedin.com/in/justinbsmith/

    40 min

  4. May 7

    Putting Data Center Deals Together with Jim Kerrigan, SIOR from North American Data Centers

    In this episode, Jim Kerrigan shares his expertise on the evolving data center industry, covering topics from supply and demand dynamics, site selection challenges, utility considerations, to future trends like AI and edge data centers.   Key Topics Data center importance and evolution Supply side challenges and moratoriums Site selection and utility considerations Impact of AI and edge computing Investment trends and market outlook   Chapters 02:42 - Supply Side Dynamics in Data Center Development 05:28 - Utility Considerations and Site Selection 08:18 - Emerging Trends: Inference and AI Data Centers 10:56 - Community Perception and Economic Impact of Data Centers 13:45 - Challenges in Data Center Development and Market Dynamics 16:23 - The Future of Data Centers and Speculative Development 21:34 - The Evolving Landscape of Farming 22:52 - Navigating Lease Contracts in Agriculture 23:25 - Understanding Data Center Lease Structures 26:27 - The Complexity of Data Center Market Dynamics 27:37 - The Role of Brokers in Data Center Transactions 29:21 - Factors Influencing Site Selection for Data Centers 31:02 - The Importance of Utility Considerations 32:02 - Power Usage Effectiveness and Its Impact 33:48 - The Demand for Data Center Capacity 34:44 - Capital Markets and Data Center Investments 37:09 - The Evolution of Data Center Valuation 38:26 - Investment Strategies in the Data Center Sector 40:09 - The Future of Data Centers and Public Perception   Episode Resources Connect with Jim Kerrigan linkedin.com/in/jimkerrigansior  https://www.linkedin.com/company/north-american-data-centers/  https://nadatacenters.com/  Connect with Justin Smith https://smithcre.com/  jbsmith@leeirvine.com  https://www.linkedin.com/in/justinbsmith/

    42 min

  5. Apr 27

    The Future of On-Demand Warehousing with Karl Siebrecht of Flexe

    In this episode, Justin Smith chats with Karl Siebrecht about the transformative approach to industrial real estate through scalable, asset-light solutions and innovative tech. Discover how Flexe is redefining warehouse utilization, market cycles, and AI-driven insights in logistics.   Key Topics The origin story of Flexe and the problem of fixed warehouse capacity How underutilized capacity can be aggregated for flexible warehousing solutions Market cycles and the impact of COVID-19 on warehousing demand The technological platform driving transparency and efficiency in logistics AI's role in optimizing scope, pricing, and operational decision-making Differences between asset-light models and traditional leasing in logistics The future of spot markets in warehousing similar to freight   Chapters 05:12 - The Evolution of Flexe and Market Insights 10:47 - Navigating Early Challenges and First Customers 15:43 - Current State of the Business and Market Dynamics 21:55 - Industrial Vacancy Rates and Market Dynamics 24:08 - Understanding Pricing Stickiness in Warehousing 25:28 - Fixed vs. Flexible Warehousing Solutions 26:32 - The Freight Market and Its Impact on Warehousing 29:04 - The Rise of Co-Working Warehouses 30:52 - The Asset-Light Model in Warehousing 32:28 - Building Trust with Operators 35:39 - Leveraging Technology for Quality Assurance 38:52 - AI's Role in Enhancing Operational Efficiency   Episode Resources Connect with Karl Siebrecht https://www.linkedin.com/in/karl-siebrecht-81188212/  https://www.linkedin.com/company/flexe/  https://flexe.com/  Connect with Justin Smith https://smithcre.com/  jbsmith@leeirvine.com  https://www.linkedin.com/in/justinbsmith/

    43 min

  6. Apr 13

    Manufacturing & Reshoring Strategies in 2026 with Rosemary Coates of the Reshoring Institute

    In this episode, Rosemary Coates of the Reshoring Institute discusses the current landscape of manufacturing, reshoring trends, supply chain risks, and the impact of automation and geopolitics on global production strategies.   Key Topics Reshoring trends and statistics Impact of tariffs and international trade policies Role of automation and AI in manufacturing Supply chain risks and international dependencies Chapters 01:02 Current Trends in Reshoring and Manufacturing 02:13 Tariffs, Risks, and Investment Delays 02:49 Why Companies Reshore: Risk Mitigation and Economics 04:28 The Myth of Patriotic Reshoring 05:07 Research and Resources from the Reshoring Institute 06:07 Manufacturing Shifts in Automotive and Mexico 08:17 Mexico's Competitive Edge: Cost and Proximity 10:17 Border Logistics and Technology in Cross-Border Trade 12:46 Mexico's Industrial Development and Infrastructure 14:05 Challenges and Opportunities in US Manufacturing 15:04 Automation, AI, and the Future of Manufacturing 18:34 Skilled Jobs and the Shift in Manufacturing Workforce 20:00 Power Infrastructure and Bottlenecks 21:32 Impact of AI and Data Centers on Manufacturing 22:59 Modern Skills for Manufacturing and Defense Industry 24:02 Defense Manufacturing and Global Supply Chains 25:43 Semiconductors, Rare Earths, and Critical Materials 27:22 Risks and Complexities of Leaving China 31:06 Risks and Challenges of Moving Out of China 32:29 Managing the Transition Out of China 34:46 Intellectual Property and Supply Chain Security 36:49 Cost and Planning for Reshoring Projects 37:44 Project Management and Site Selection   Episode Resources Connect with Rosemary Coates https://www.linkedin.com/in/rosemarycoates/ https://reshoringinstitute.org Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ jbsmith@leeirvine.com https://www.linkedin.com/in/justinbsmith/

    39 min

  7. Feb 21

    Supply Chain Problem Solving with Nick Biondolillo of Cameo Consulting

    In this episode of the Industrial Insights podcast, Justin Smith interviews Nick Biondolillo of Cameo Consulting, a supply chain consultant with extensive experience in various sectors. They discuss Nick's journey through the supply chain industry, the importance of hands-on experience, and the transformative role of AI in supply chain operations. The conversation also covers market trends, the significance of on-site assessments, and the challenges of navigating freight dynamics. Nick emphasizes the need for consultants to bridge the gap between technical analysis and business impact, providing valuable insights for professionals in the field.   Key Takeaways Nick Biondolillo shares his journey in supply chain consulting. The importance of hands-on experience in understanding supply chain issues. AI is transforming the way supply chains operate and analyze data. Consultants must bridge the gap between technical analysis and business impact. Market trends indicate a potential tightening in freight pricing. Understanding consumer expectations is crucial for supply chain decisions. On-site assessments provide invaluable insights into operational challenges. Effective communication is key in supply chain management. Rationalizing warehouse locations can have significant financial implications. The future of supply chain will be influenced by technology and market dynamics.   Chapters 01:36 Nick's Journey Through Supply Chain 10:08 Bridging the Gap: Consulting and Implementation 16:44 The Impact of AI on Supply Chain 20:19 Exploring Revenue Management and Optimization 22:03 Optimizing Freight and Margins 23:45 Understanding Contribution Margins 25:19 Tools for 3PLs and Network Design 27:11 Warehouse Rationalization Challenges 30:30 Consumer Expectations and Service Levels 32:17 Consulting Assessments and Client Engagement 36:30 Market Trends and Future Predictions 43:39 Freight Rejections and Market Dynamics   Episode Resources Connect with Nick Biondolillo https://www.linkedin.com/in/nick-biondolillo/ https://www.cameoconsulting.net/ https://www.linkedin.com/company/cameoconsulting/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ jbsmith@leeirvine.com https://www.linkedin.com/in/justi

    47 min

  8. Jan 24

    Survival to Systems: When 3PLs Hit the Growth Ceiling with Casey Winans of Fullstride

    In this episode of the Industrial Insights podcast, Justin Smith and Casey Winans discuss the current state of the WMS and 3PL market, the challenges faced by logistics companies, and the importance of readiness in implementing warehouse management systems. Casey shares his journey from software engineering to consulting, highlighting the need for effective systems and processes in scaling operations. The conversation also touches on market trends, technology's role in logistics, and the future of the industry, emphasizing the importance of adaptability and continuous improvement.   Key Takeaways The logistics market is transitioning from survival to thriving post-peak. Scaling a 3PL requires effective systems and processes. Many companies struggle with the transition from manual to automated operations. Understanding client readiness is crucial for successful WMS implementation. The mid-market presents unique challenges and opportunities in logistics. Consulting firms often focus on hourly rates, which may not align with client needs. Technology is rapidly evolving, impacting the 3PL landscape. AI has the potential to enhance operational efficiency in logistics. Market consolidation is expected as companies seek to improve margins. Continuous improvement is essential for long-term success in logistics.   Chapters 00:30 - Current Market Trends in 3PL and WMS 03:10 - Casey Winans' Journey in Logistics 11:26 - Challenges Faced by Smaller 3PLs 19:28 - The Role of AI in Logistics 26:59 - Future Trends in 3PL and WMS   Episode Resources Connect with Casey Winans https://www.linkedin.com/in/cwinans/ https://www.linkedin.com/company/gofullstride/ https://www.gofullstride.com/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ jbsmith@leeirvine.com https://www.linkedin.com/in/justi

    50 min
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Ratings & Reviews

5
out of 5
5 Ratings

About

Industrial Insights is a podcast that highlights the market dynamics, high level strategies, and in the trenches tactics for tenants and owners of industrial real estate. Each episode is designed to take hard fought wisdom from practitioners and break it down into insights that can drive better commercial real estate decision making. The host, Justin Smith, shares his experiences from 16 years in the business and brings in industry experts to discuss critical aspects of successful industrial projects.

Information

  • Creator
    Justin Smith
  • Years Active
    2021 - 2026
  • Episodes
    100
  • Rating
    Clean
  • Copyright
    © Copyright 2024
  • Show Website
    Industrial Insights

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