CNSREIT-AR-2024 Final - Flipbook - Page 48
Certain of our industrial properties may be special use or build-to-suit and may be difficult to sell or re-let upon tenant
defaults or lease terminations.
Certain of our industrial properties may include special use or build-to-suit properties. These types of properties are
relatively illiquid compared to other types of real estate and financial assets and this illiquidity will limit our ability to
quickly change our portfolio in response to changes in economic or other conditions. With such properties, if the current
lease is terminated or not renewed, we may be required to renovate the property or to make rent concessions to lease the
property to another tenant, finance the property or sell the property. In addition, if we are forced to sell the property, we
may have difficulty selling it to a party other than the tenant or borrower due to the special purpose for which the property
may have been designed. These and other limitations may affect our ability to sell or re-let our industrial properties and
adversely affect our results of operations at such properties.
We face risks in effecting operating improvements.
In some cases, the success of an investment will depend, in part, on our ability to restructure and effect improvements
in the operations of a property. The activity of identifying and implementing restructuring programs and operating
improvements at properties entails a high degree of uncertainty. There can be no assurance that we will be able to
successfully identify and implement such restructuring programs and improvements.
Our industrial tenants may be adversely affected by a decline in manufacturing activity in the U.S.
Fluctuations in manufacturing activity in the U.S. may adversely affect any industrial tenants we may have and
therefore the demand for and profitability of our industrial properties. Trade agreements with foreign countries have given
employers the option to utilize less expensive foreign manufacturing workers. Outsourcing manufacturing activities could
reduce the demand for U.S. workers, thereby reducing the profitability of our industrial tenants and the demand for and
profitability of our industrial properties.
We could be negatively impacted by the condition of Fannie Mae or Freddie Mac and by changes in government
support for residential housing.
Federal National Mortgage Association (
