About W. Baird
In a September 2024 interview, W. Baird, co-founder, chairman, and CEO of Terreno Realty Corporation, discussed the company's investment strategy and recent milestones. He stated that Terreno invests in industrial real estate in six U.S. markets, focusing on "very urban infill locations" that are the "densest, closest to people assets." Baird described the company's "jewel in the crown" as a focus on "growing per share results" rather than being the largest operator. He noted that Terreno has made an acquisition every three weeks for 13 years, with an average deal size of $12 million, building a $6 billion portfolio.
Baird also addressed sustainability, saying the company's biggest challenge is "getting the marketplace to understand what we do." He argued that repurposing urban infill buildings to minimize truck travel distances is "highly environmentally friendly," contrasting this with what he described as the marketplace's focus on superficial measures like installing bike racks at suburban buildings. Baird expressed that Terreno has reached "critical mass" and is "ready for prime time" to demonstrate its track record.
Source: AI-verified profile updated from W. Baird's recent appearances.
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Transcript (14 segments)
I
Interviewer0:01
Welcome to the next edition of the Global Cities video series. I'm here today with Blake Baird, the CEO of Terreno. So Blake, welcome to London. It's great to have you over here. So you set up Terreno back in 2010, if I'm right. Can you remember what the US 10-year was back in 2010?
W
W. Baird0:18
Good question. I would say 5%. It was a low of about 2.6 and high of four, so not too bad. But it makes today look interesting in comparison.
I
Interviewer0:38
So as you know, quick-fire questions about the business that you run. Could you just quickly summarize your business for us?
W
W. Baird0:42
Sure. We invest in industrial real estate in six markets: three on the West Coast of the US, three on the East Coast. We try to focus on very urban infill locations, the densest, closest to people assets that we can own. Terreno means land in Italian, so we're really focused on owning the land underlying these buildings.
I
Interviewer1:09
I never knew that. Thank you for that. In terms of the demand for these assets, where does that come from?
W
W. Baird1:13
It comes from any place you can imagine, all the way from Amazon wanting to deliver a box to your front door to the local plumbing supplier. In New York City, we have a studio like this because there are a lot of creative people. It's just a location they want to be. The important thread through all of it is customers that need to be in that location to make their business better.
I
Interviewer1:49
Great, thank you. Curious to see if your answer matches what we as a team think, but what do you regard as the jewel in the crown of your business?
W
W. Baird1:58
The jewel in the crown of our business is a focus on growing per-share results, not to be the biggest but to be the best and the most profitable, and owning the real estate that allows us to do that.
I
Interviewer2:16
Our answer would have been, and it's kind of related, we would say the management team, your track record of achieving that. We back you to do that versus your peer group.
W
W. Baird2:26
See, I was just too humble to say that. I'm not sure if I've been referred to as a jewel in the crown before, but we'll see.
I
Interviewer2:33
In terms of supply, how hard is it for somebody else, one of your peers, to try and recreate your portfolio?
W
W. Baird2:39
We think it's not impossible but as close to impossible as investing gets. We have made an acquisition every three weeks for 13 years, and the average acquisition size is only $12 million. So to create a $6 billion portfolio one acquisition at a time every three weeks for 13 years, it takes time.
I
Interviewer3:08
As we look out over the next five years, what's the thing that most excites you about the business?
W
W. Baird3:12
What excites us most is that we have now gotten to a critical mass where we can support the infrastructure of a public company. We have a demonstrated track record of outperformance, and we're now ready for prime time. We've created this portfolio over 13 years, we think it can do better than any other portfolio, and now let's show you what we can do.
