Flex Space investing

[Tanner Nelson]

Hello, My business partner and I are breaking ground on our very first flex space project in Mustang, Oklahoma in the next 3-4 weeks. We will have a total of 20 1,000 sqf shop spaces each unit will have a 14' overhead door, heated/cooled bathroom + office space & designated parking.

The goal is to build, lease up, put under management then sell to an investor that would like to buy them all as a turn key investment. We have only done this with single family rentals up to this point so my question is how would I go about targeting investors that are interested in this class of real estate?

Thank you in advance for any info you can provide!

[Derek Bell]

I have done what you guys are doing multiple times. 

I am curious, why are you doing 20 units at 1k sf each?? If you are planning to sell this to an investment buyer, stick to units around 4-5k sf. Only mom and pop businesses will rent a 1k sf unit. Investment buyers want to see bigger national/regional business as tenants, not mom and pop. Also, the build out for 20 units will be costly. Do 4 units at 5k sf each. So, doing less units will be better for you all around. Less up front cost, bigger named/pocket tenants, roughly the same lease rate, etc etc. 

Do a NNN lease and bring in that broker's help while you are in construction. Try for a 5 year lease. I wouldn't do less than 3 if you are planning on selling. Also, you dont need to do property management. Do it yourself.