Commercial warehouse rental investments

[Becky Samuel]

Hi, I have a friend who has been very successful in buying and renting commercial warehouses. My goal for next year is to get REPS status, and I am wondering if warehouse rentals apply towards REPS hours the same as any other residential type rental properties do?  Also, any thoughts on commercial warehouse space rentals, pros/cons etc, is welcome! Thanks!

[Henry Clark]

Start small and work your way into it.  One lessee exiting could send you into negative cash flow for a few years.

Primary determinants:

1.  Square footage- The larger, the harder to rent and more tenant specific.

2.  Utility access and sizing

3.  Roof, more specifically Eave height and clearance.

4.  Door width, height and clearance.

5.  Triple net, lease terms, buildout costs or allowances.

6.  Zoning