About Michael Coke
In a September 2024 interview, Michael Coke, co-founder, president, and director of Terreno Realty Corporation, discussed the company's investment strategy and recent milestones. Coke stated that Terreno focuses on industrial real estate in six urban infill markets on the U.S. coasts, aiming to own the "densest, closest to people assets." He described the company's "jewel in the crown" as a focus on growing per-share results rather than being the largest operator. Coke 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. He said the company has reached "critical mass" and is "ready for prime time" to demonstrate its track record.
Coke also addressed sustainability challenges, saying the biggest hurdle is "getting the marketplace to understand what we do." He contrasted Terreno's approach of repurposing urban infill buildings to minimize truck travel distances with what he described as the market's focus on superficial environmental measures, such as installing bike racks at buildings in remote locations. He emphasized that Terreno is focused on "meaningful sustainable improvements to the environment through repurposing facilities."
Source: AI-verified profile updated from Michael Coke's recent appearances.
Browse all interviews →
Transcript (25 segments)
I
Interviewer0:04
Welcome to the next edition of the Global Cities video series. I'm here today with Blake B, the CEO of Terreno. So Blake, welcome to London, and 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?
M
Michael Coke0:18
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?
M
Michael Coke0:42
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?
M
Michael Coke1:13
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 it's New York City and 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?
M
Michael Coke1:58
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.
M
Michael Coke2:26
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?
M
Michael Coke2:39
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
Interviewer3:06
That's interesting. As we look out over the next five years, what's the thing that most excites you about the business?
M
Michael Coke3:12
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're ready to say 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.
I
Interviewer3:41
From a sustainability perspective, what do you think is the biggest challenge that you face?
M
Michael Coke3:47
The biggest challenge is actually getting the marketplace to understand what we do. We think repurposing urban infill buildings, where we're minimizing the distance trucks have to travel to serve their customers, is highly environmentally friendly. The marketplace is focused on building a building in the middle of nowhere and putting a bike rack there to get a good environmental score. We're really focused on meaningful, sustainable improvements to the environment through repurposing facilities.
I
Interviewer4:24
Something we've been looking at a bit, that lost trucking miles, if you like, exactly what you referred to. Okay, now three questions nothing to do with real estate. Who's the most famous person you've met?
M
Michael Coke4:33
Bruce Springsteen.
I
Interviewer4:37
Very good. We were just talking about rock stars. Who wins a fight between a lion and a tiger?
I
Interviewer4:42
Agree. What do you prefer, cheese or chocolate?
I
Interviewer4:49
Cheese? Okay, I prefer chocolate. Finally, what's your favorite city?
M
Michael Coke4:53
My favorite city is Porto.
I
Interviewer4:57
Very good. Thank you very much for joining us today, and thank you to everyone who has watched.
