Cobalt Capital Partners invests in light industrial properties in major markets throughout the U.S. through its two private REITs. We define the light industrial property type very specifically as smaller distribution buildings that can accommodate smaller space needs, i.e., spaces generally between 10,000 and 50,000 sq. ft. These buildings also have a relatively low office finish level, i.e., 20% or less. The light industrial property is designed to provide distribution space that cannot be readily accommodated in bulk or "big box" warehouses.
Although our average leased space is less than 30,000 sq. ft., a significant percentage of our tenants are international or national firms. These companies tend to have local or regional distribution needs that can only fit into a smaller building. Moreover, because our entire business is focused on these smaller space requirements, we can provide an extremely high level of service to our tenant customers. As a result, a very high percentage of our tenants renew and expand their leases with us.