They're not competing with each other. They're competing with the warehouses that blanket the industrial parts of LA and areas south of Newark.
If they have low grade tenants off and on for 10yr they'll be in the black. The big money cash out is when some company who's expansion is being strangled somewhere else decides that they're gonna open a new site. And if you look at the macro trends this is slowly what's happening.
It's like the big boy version of how self storage can be a speculative RE investment rather than a income stream producing investment.
If they have low grade tenants off and on for 10yr they'll be in the black. The big money cash out is when some company who's expansion is being strangled somewhere else decides that they're gonna open a new site. And if you look at the macro trends this is slowly what's happening.
It's like the big boy version of how self storage can be a speculative RE investment rather than a income stream producing investment.