We Do the Work That Builds the Value
Our approach starts before we buy. We primarily source off market, buy at a discount to market trades and replacement cost, and underwrite conservatively. Upon closing, our strategy centers on four operating levers that directly influence net operating income: occupancy, rents, expenses, and physical improvements. Each one gives our team a practical way to strengthen property performance.
What We Buy
Rycore acquires Class B, multi-tenant small bay properties in infill submarkets across Texas and Florida. These buildings are divided into smaller suites, each with warehouse space and a small office. Tenants are local businesses such as contractors, trade services, and distributors.
Why Small Bay
Most new industrial development has focused on large distribution buildings, and small bay costs more per square foot to build, especially on infill land. As a result, little new small bay space has been added, and much of the existing inventory is decades old, which makes these buildings difficult to replace. Demand, meanwhile, stays steady from small and mid-sized businesses that need functional space close to the customers they serve. A varied tenant base also means no single tenant drives a property's income. Together, limited supply and a deep tenant pool help keep occupancy high and support rent growth over time.
How We Source
Most of Rycore’s deals are relationship-driven and off-market. We go directly to owners, and we selectively pursue marketed opportunities when the basis and business plan meet the same standard we apply to every acquisition.
How We Underwrite
Every acquisition is underwritten to perform even if market conditions move against us by exit. Our business plans focus on operational performance and do not depend on cap rate compression to achieve our targets.
How We Close
A discretionary capital line and balance sheet support let us close with our own capital, without waiting on a syndication. For an off-market seller, that certainty is often worth more than the last few points of price.
Leasing & Occupancy
Vacancy affects performance every day a suite sits empty. A disciplined make-ready process helps us prepare spaces quickly, minimize downtime, and give the leasing team a better product to take to market.
Rent Growth
Many small bay industrial properties carry rents below current market levels. We evaluate rents at each renewal and new lease, capturing available upside while considering tenant retention and the property’s long-term stability.
Expense Control
Rycore manages property operations, construction, and accounting internally. This gives our team direct visibility into spending, maintenance needs, vendor performance, and capital projects. It also helps us avoid third-party markups and keep costs aligned with the business plan. Every operating dollar is managed by a team with a direct stake in performance, not a fee-based manager.
Physical Improvement
Many small bay properties come to us with deferred maintenance and dated infrastructure. Our in-house construction team addresses roofs, parking lots, building systems, and curb appeal on our own timeline and budget. Inside the suites, we peel back office finish that tenants no longer need, which creates more functional industrial space and broadens the pool of prospective tenants. Together, these improvements help the property lease faster, keep tenants longer, and hold its value over time.