Franz Colloredo-Mansfeld

Players in the warehouse and logistics space intimately understand the network effect. For Franz Colloredo-Mansfeld and his Cabot Properties, the concept of cultivating connections and building momentum explains its significant dealmaking pace despite a secular slowdown and continuing dislocation in the business. 

The headlines suggest the firm hit a pinnacle in late January 2024 with the announcement of Value Fund VII, an ambitious, global $1.57 billion vehicle — and the private partnership’s largest to date — to develop and redevelop industrial property. After fundraising throughout 2023, unleashing $3.5 billion in capital squarely aimed at a sector facing a slowdown was bold. But Cabot obviously saw 2023 as not just about raising, but spending too. The firm deployed nearly $1 billion in capital, taking advantage of high rates to buy, demolish, and rebuild sites near central business districts.

Like a chip lead in poker using their earnings to shape the game, Cabot hasn’t been afraid to act when others have pulled back. Colloredo-Mansfeld specifically pointed to his own flight-to-quality theory and efforts to expand internationally in Europe and low-vacancy Australian markets in particular as a way to hedge risks, reduce exposure, and aggressively pick up income-generating properties when others may be flinching. 

After selling nearly $5 billion in assets between 2016 and 2021, the firm was well positioned to act over the last two years and enter 2024 with tailwinds. And, with a blue chip roster of tenants like Amazon, FedEx, UPS and DHL, Cabot can expand internationally and strategically while landing even more leases from top global shippers. Shipping has gone global, so why not industrial real estate investing and operations? 

“When you’re in the money, and you’re in a position to make a profit, you should do that,” Colloredo-Mansfeld said. “We’re working with global institutional investors and U.S. investors who all want to pursue opportunities outside the U.S.”

Cabot’s industry expertise, after two decades of success as a private fund, has helped it not just key in on opportunity, but also build enough cash to create its own. Increasingly, Cabot has been developing, especially infill, last-mile industrial in high-demand, asset-light markets. It’s the epitome of the network effect.