Exclusive Q&A: Dedeaux Properties Principal Weighs The Current Industrial Market
Dedeaux Properties principal Brett Dedeaux is bullish on industrial real estate. Having grown up in a family logistics business, working in the industry was a natural fit for him. Now with 12 employees and a 6.5M SF portfolio, Dedeaux Properties is coming into its own. Brett is one of the all-star panelists scheduled to speak at Bisnow's 6th Annual SoCal Industrial Real Estate event Wednesday at the LA Athletic Club.
Bisnow: How did you get into the industry?
Brett Dedeaux: The family business is Dart Warehouse Corp. It’s a national, third-party logistics company. Through that, I grew up around warehouses and truck terminals, so I was drawn to real estate and specifically industrial because our family business utilized and owned logistics properties.
Bisnow: When did you decide to venture out and form your own company?
Brett: I started off working for the family company. Then, I moved directly into industrial real estate as I felt it was a better fit for my skill set. I enjoyed negotiation and finding deals and found the transactional nature of the business exciting, as well as the development process. I began in industrial brokerage, working primarily with logistics companies. Then, I partnered up with other executives in the industry to invest and develop properties before the formation of Dedeaux Properties in 2006.
Bisnow: Tell us about some of your current projects.
Brett: We have six projects under construction. We have a 125k SF distribution building nearing completion in the City of Industry. We have a 50k SF produce facility in Commerce, also nearing completion. We’re also under construction on a retail development in Vernon. On the value-add side, we purchased an eight-building business park in Santa Fe Springs at the end of last year that we repositioned and just completed the renovations of a 266k SF refrigerated distribution center in Central LA with leasing pending for over half the space.
Bisnow: What do you find most rewarding about your work?
Brett: I truly enjoy working with the other professionals in the industrial real estate business. Many have developed into real friendships and, of course, we have a great team here at the company that are talented and enjoyable to work with. For me, the exciting part of the business is creating a project from the ground up and seeing your vision come to fruition. I enjoy finding a great opportunity on the acquisition side and having it come together profitably for ourselves and our partners is rewarding.
Bisnow: What do you think is the state of the current industrial market?
Brett: On one side, we’re in a very healthy market with low vacancy and strong demand. The challenge, I think, is rising land prices and pricing on buildings makes it more challenging to find new opportunistic deals. While it makes your existing inventory successful, it’s more challenging to find properties yielding high return. So you have to reset your expectations on returns when you’re in such a strong market.
Bisnow: What do you think the future of industrial real estate looks like?
Brett: For SoCal and the greater LA area, I think the market is going to go up and down, and I think a lot of people are wondering when the market may turn here. I still think it’s got some legs left on it. We have a diverse and a deep market, meaning a deep pool of tenants and users here, so I feel when the market changes and when the economy changes, Southern California will be better protected on the downside than other markets around the country.
Bisnow: What do you like to do in your personal time?
Brett: When I’m not spending time with my two young children, who are 2 and 4, and my family, I love to surf, golf, mountain bike, ski and play tennis. I have a real passion for the outdoors, and we love to travel.
Hear more from Brett at Bisnow's 6th Annual SoCal Industrial Real Estate event at 7:30am Wednesday at the LA Athletic Club.
