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In episode E131 of the REI Hot Seat, Andrew Hines and Jacob Campagnaro dive into the growing appeal of industrial real estate as an alternative to multifamily investing—especially for those frustrated with Ontario’s landlord-tenant regulations.
Unlike residential properties, commercial leases fall under contract law, giving landlords more control and fewer bureaucratic hurdles.
The episode focuses on a Burlington, Ontario listing and explains the fundamentals of the small bay industrial asset class—properties typically used by tradespeople and small manufacturers that feature flexible-use units with roll-up doors.
Jacob outlines why investor interest in industrial assets is surging: rising cap rates in multifamily, recession-proof tenant demand, and leaner operating models through triple net leases (NNN), where tenants cover taxes, maintenance, and insurance.
He contrasts this with gross leases and emphasizes the importance of understanding lease structures.
Due diligence is also covered in depth, including building condition assessments, environmental reports, and lease audits—highlighting risks like contamination and lease expiry clustering.
They also touch on financing challenges for partially vacant commercial assets and suggest strategies like vendor take-back mortgages (VTBs) to bridge gaps before refinancing.
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E131 Why Aren’t More Investors Buying Industrial Properties?
00:40 Intro
02:08 Industrial?
07:03 Location, Demand & Tenant Mix
10:48 Deal Breakdown: Burlington Property
15:35 Triple Net (NNN) vs. Gross Leases
21:42 Due Diligence & Environmental Risk
25:09 Lease Terms & Financing Challenges
28:16 Entry Costs & Scaling Industrial
30:02 Community, Meetups & Final Thoughts
Disclaimer: This episode, as with every episode of this show, should NOT be considered as advice. Investment advice is NEVER given on this show. Always consult a competent investment advisor before making an investment decision.
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Andrew Hines is a seasoned real estate investor, business-builder, educator, and podcast host, well-recognized for his extensive experience in the field. Andrew graduated with an HBA from the Richard Ivey School of Business in 2008 and spent three years teaching introductory business at Western University as a Lecturer. He has been investing in real estate since 2011 and completing value-add projects since 2015, primarily in the luxury student rental space. Andrew started a project management company for building out new-construction townhomes in 2016 and has since built over 50 residential units throughout Southwestern Ontario. Andrew is an advocate for treating real estate investing like a business and uses his experience in his educational endeavors, coaching numerous investors on strategies to achieve financial independence and scale their portfolios effectively.
His podcast, "The Andrew Hines Real Estate Investing Podcast," serves as a platform for sharing insights, strategies, and success stories, connecting a community of like-minded individuals passionate about real estate investing. With a background that blends practical investing experience and investor-focused work, Andrew has become a pivotal figure in the Canadian real estate investing community.