What are you Doing w/ 9,000 SQ.FT of Blank Space?

Scranton-Wilkes-Barre Metro
Commercial Real Estate Investing
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What are you Doing w/ 9,000 SQ.FT of Blank Space?

Matthew Nelson
Investor · West Pittston, PA · Member since 2022 · 16 posts · 5 votes

Hey,

I am currently under contract on a commercial space w/ over 9,000 SQ.FT - high-quality block & brick construction, stage three electric, new rubber roof, etc.

I believe it was most recently used as a retail store judging by a old walk-up counter in the front of the building... the building requires slight work w/ an estimation of $25K on the extreme end.

The building is split in half w/ a stick framed wall causing a split of about (43 X 60) on the side closer to the street w/ a (10 X 10) office space that has a bathroom, as well as an additional (5 X 6) bathroom accessible from the entire front portion of the building.

The back half of the building measures (30 X 70) w/ an additional framed wall in the back for an additional (10 X 70) storage space... the back half of the building has a second story walkout & walk-down access to the basement.

Additionally, there is a basement sized (43X41) w/ an exterior walkout.

I intend on putting this building out in phases....

- The first being converting the (10 X 70) space into seven (10 X 10) storage spaces aimed for paper storage for professional offices such as title companies, real estate brokerages, etc... the income from this will cover the seller financing note I have on the property.

- After that, it's to the front of the building... there's a few general renovation tasks that I won't bore you with but I will be putting a garage door in the front of the building to make this space indoor car storage for at least fifteen cars... this portion of the building isn't over the basement but I'll wait until a structural engineer gives me the okay before I start this project.

- I'll also be putting a front door on that (10 X 10) space when we're adding the garage door to have the option to rent it out but I'm most likely going to keep the space for myself.

- Once complete w/ the front of the building I'm likely going to mirror the storage setup onto the other side of the building in the back partition... I will combine the hallway & storage space found in the front & back of the building so I'm able to reclaim space & mirror the room's storage spaces.

- Lastly, the basement... I don't have anything set in stone yet but I would add either a warehousing tenant (there's drive-up access to the back of the building) or two apartments... I'd have to figure out the costs of adding an apartment in a basement, which I haven't done quite yet... zoning is not a concern.

- - - - -

Well, what would you do? I'm not really asking for advice as much as I'd like to see there be a conversation on this thread... this is a lot of space & I think creativity can flow on commercial projects, which is why I like them so much.

I'll attach the floorplan but keep in mind that they aren't 100% accurate, these LiDAR scanners aren't perfect yet so that's why the square footage is off at the bottom... I'm using it more as a visual.

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Ronald RohdePro Member
Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
3y

If your demand is there, I like indoor car parking.

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  • Jeff Stein
    Rental Property Investor · Milwaukee, WI · Member since 2018 · 138 posts · 52 votes
    3y

    Looks like you have a great space with a lot of potential. I may be a little biased since I mostly deal in office buildings, but you could think about a co-working office space. There is a little more work and management involved, but it has a high cash flow potential. I am currently working on a space that occupies about $10,300 in Wisconsin.

    1Reply
  • Ronald RohdePro Member
    Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
    3y

    If your demand is there, I like indoor car parking.

    2Reply
  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    3y

    Need more info on location.  Population, vehicles per day, turn in/out lanes out front, neighboring properties, parking spaces, extra land, etc.

    We are in Storage.  You will get far more money as a Flex building.

    Door height and Ceiling clearance height dictates usage.

    1Reply
  • Matthew Nelson
    OP
    Investor · West Pittston, PA · Member since 2022 · 16 posts · 5 votes
    3y
    Quote from @Henry Clark:

    Need more info on location.  Population, vehicles per day, turn in/out lanes out front, neighboring properties, parking spaces, extra land, etc.

    We are in Storage.  You will get far more money as a Flex building.

    Door height and Ceiling clearance height dictates usage.

    I'm over in Northeast Pennsylvania.. think Scranton.
    We're able to provide goods to 40% of the U.S within one day from any warehousing close to our major highway systems.

    The property itself is located in a somewhat residential area on a main street w/ a city population of 44K.
    The area is more lower class but I live in the area & I've seen an improvement within the last five years.
    There's plenty of car traffic, not so much pedestrian.
    I haven't measured the ceiling height but we're somewhere around 15-20 feet.
    We have drive up parking space in the back of the building - enough for about five cars (+/-) at a time.
    We do have a mix of residential & commercial neighbors.

    Would you recommend going with car storage or should I frame out additional storage spaces in the front half of the building?




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  • Matthew Nelson
    OP
    Investor · West Pittston, PA · Member since 2022 · 16 posts · 5 votes
    3y
    Quote from @Ronald Rohde:

    If your demand is there, I like indoor car parking.


     The demand is here for it in our area.

    Another plus side is I'm able to look at the nice cars, haha.

    1Reply
  • Matthew Nelson
    OP
    Investor · West Pittston, PA · Member since 2022 · 16 posts · 5 votes
    3y
    Quote from @Jeff Stein:

    Looks like you have a great space with a lot of potential. I may be a little biased since I mostly deal in office buildings, but you could think about a co-working office space. There is a little more work and management involved, but it has a high cash flow potential. I am currently working on a space that occupies about $10,300 in Wisconsin.


     That's interesting. I'll have to run the numbers to see if I'm better off adding office spaces in the front partition rather than indoor car storage.

    The only downside I could see is that there aren't too many professional offices near where this building is - most migrated to the city square & surrounds due to the city covering first months rent & deposit in certain parts of the city as a revitalization project of a sort.

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  • Ronald RohdePro Member
    Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
    3y
    Quote from @Matthew Nelson:
    Quote from @Ronald Rohde:

    If your demand is there, I like indoor car parking.


     The demand is here for it in our area.

    Another plus side is I'm able to look at the nice cars, haha.

    Its been huge in TX, either private garages sold as condos, or shared warehouse space. People have too many cars!
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