Field Notes: A Glimpse into Industrial Asset Management with Kent Heller

At BKM, our Regional Asset Managers play a critical role in executing our value-add strategy, identifying opportunities, and driving performance across every market we serve. In our Field Notes series, we spotlight the experts behind our portfolio to share insights into the regional trends shaping today's multi-tenant light industrial landscape. In this edition, we feature Kent Heller, Associate Director of Asset Management, who oversees BKM's Orange County portfolio. Kent shares what makes Orange County a compelling market for multi-tenant light industrial investment, the key industries driving tenant demand, and how BKM leverages its vertically integrated platform to create long-term value in one of Southern California's most established industrial markets.

Kent Heller

📍 Newport Beach, CA

8 parks | 630 tenants | 1.25M SF

With BKM since March 2026

What is your name, title, and what markets do you work in? Can you briefly explain what you do?

K: My name is Kent Heller, and I’m an Associate Director of Asset Management with BKM Capital Partners, responsible for our assets located in Orange County, California.

Prior to acquiring an asset, our investment team develops a business plan designed to achieve specific investment objectives. As an asset manager at BKM, I am responsible for executing these business plans across my assigned assets.

On a day-to-day basis, this involves collaborating with our leasing, property management, construction, and portfolio management teams, meaning no two days are exactly alike.

What make Orange County particularly well-suited for BKM's small- and mid-bay strategy?

K: Orange County features a large, dense customer base and an exceptionally diverse small business economy. This wide array of local service providers, trades, manufacturers, and distributors requires flexible suite sizes, ease of access, and the ability to expand within the same business park.

These are hallmarks of the assets we operate, allowing us to improve tenant retention and reduce rollover costs.

Additionally, much of the industrial inventory is located in established infill submarkets near customers, labor pools, and transportation infrastructure, making these locations ideal for supporting our small- and mid-bay tenant profiles.

What are the primary demand drivers supporting leasing activity in Orange County? What industries have the largest presence here?

K: Orange County benefits from a diverse business base, generating demand across multiple sectors, including advanced manufacturing, medical devices and biotechnology, aerospace and defense, distribution and last-mile delivery, information technology, business services, construction, and specialty trades, just to name a few.

This variety of sectors creates an ecosystem that generates demand from smaller suppliers, distributors, and service providers, all of which make up our underlying tenant base. The economy is not overly dependent on any single sector, and that diversification contributes to consistent growth and stability throughout the region.

What makes Orange County such a difficult market for new entrants in the space? What are the barriers to entry?

K: As with many coastal areas, land in Orange County is scarce and expensive. Industrial sites compete with residential, retail, and other high-value uses. Since redevelopment is costly and time-intensive, light industrial properties generally do not generate the higher returns needed to justify ground-up infill development.

Furthermore, existing ownership is fragmented, making it difficult to build the scale needed to efficiently support this operationally intensive property type.

BKM’s integrated leasing, property management, construction, and asset management platform provides a competitive advantage that is difficult for new entrants to replicate quickly, giving us an edge over other local operators.

What demographic and employment trends do you see in Orange County that drive investment in the region?

K: Orange County’s gross domestic product (GDP) is approximately $350 billion, placing it among the world's 50 largest national economies if measured independently.

The region features a high median household income and a highly educated population, with more than 40% of residents holding at least a bachelor’s degree. These factors support strong consumer spending and a highly skilled workforce.

The county also has a strong entrepreneurial culture that fosters small business growth. Additionally, its diverse population, with 30% of residents being foreign-born and nearly half speaking a language other than English at home, contributes to a broad range of locally owned businesses and expanding trade relationships.

Are there any geographic advantages to this market? I.e. transportation corridor, coastal location, trade hub, etc.

K: Orange County benefits from numerous geographic advantages, including a robust trade network, proximity to Los Angeles, San Diego, and the Inland Empire via an extensive freeway system, and access to international air and sea transportation that supports commerce and workforce mobility.

Limited developable land further reinforces the scarcity of industrial properties, particularly within the multi-tenant light industrial segment. This aligns with BKM’s investment thesis of owning business parks in densely populated markets with established infrastructure that is difficult to replicate and locations that are strategically important to tenants.

Lastly, and perhaps most importantly, Orange County’s stunning natural beauty and outstanding year-round weather continue to attract small business owners, consumers, and a talented workforce to the region.

What are industrial tenants in this market prioritizing right now?

K: After several years of rapid rent growth, tenants have become increasingly price-conscious and are carefully evaluating their total occupancy costs.

As a result, many are prioritizing efficient warehouse configurations, adequate power, convenient loading access, and, perhaps most importantly from a cost perspective, the amount of office space they need.

Tenants also place a high priority on clean, well-maintained spaces with reliable roofing and HVAC systems, upgraded lighting, adequate parking, and prompt resolution of operational issues by ownership. These are all qualities we strive to deliver across our business parks.

What is one thing about this market that surprises people when they visit?

K: People are often surprised by just how much industrial activity is hidden in plain sight.

Orange County is well known for its beaches, resorts, and affluent residential communities, but behind that image is an extensive network of contractors, advanced manufacturers, distributors, and service businesses that support the regional economy.