Dirty Deeds Leases, Vacancies, and Distress: The Real Industrial Playbook
Feb 22, 2026
Jeremy Mercer, founder of Matador Realty Investments and industrial real estate operator, built a multi-hundred-million-dollar portfolio by tackling distressed and value-add industrial assets. He discusses vacant buildings, lease deep-dives, zoning fights with cities, pricing and underwriting, leasing velocity, tax-foreclosure land plays, and creative capital structures for rescuing mispriced deals.
AI Snips
Chapters
Transcript
Episode notes
Underwrite For 8% Stabilized Returns
- Underwrite to stabilize to ~8% NOI within 12–24 months and plan to exit at 150–200 bps cap rate compression.
- Jeremy targets stabilized returns around 8–8.5% and exits in the low sixes if markets permit.
Audit Competitor Portfolios For Missed Options
- Monitor competitor lease expirations and proactively contract buildings when tenants' renewal windows are near to capture mispriced options.
- Jeremy's partner audits competitor portfolios and offers advisory to capture missed renewals and buyouts.
Revalue Assets By Closing The Rent Gap
- Re-lease or renegotiate below-market tenants to market rents to revalue an asset; find mark-to situations and support comps before bidding.
- Focus on comps that justify projected rents and estimate CapEx to bridge to market.