ISO Resources for Newbies. I think I Just Closed a good deal, What's Next?

[Michelle Mercer]

Hi all,

I've been investing in real estate for 10 years, mostly BRRRR in Midwest and Georgia, STR in TN/NC, and recently bought an industrial warehouse in GA. I got it by accident and not really sure what I'm doing next. I want to learn it more systematically so I can feel more confident. Any books, courses, strategies, suggestions will be appreciated.

Deal:

It's a 3-units M1 property listed at $2M, bought it for $1.75M three months ago. Leased it out prior to closing. Appraised at $2.4M after leasing, so instant value add of almost $700K. 

Financing from a regional bank, $620K downpayment, 5.99% rate, 20 years amt, lock for 3 years w/ personal & business guarantee. It's been cash flowing nicely - rent comes in at $180K NNN, mortgage is $98K. That cash flows better than my SFH deals and it seems to be easier than SFH LTR.

I'm managing the property myself. Honestly so far I've done nothing besides just paying the TI to my tenants and collecting CAM each month in addition to rent...My CAM estimate is way off, so what I collect is low. The tax & increase bill increased a ton this year from what I got quoted to what it ends up with. I also didn't realize how much hassle it's going to take for simple things like adding a water meter...

My goal is to get into development - building industrial warehouses each 3K-10K sqft, very similar to this deal.

Questions:

1. What should I be aware of? Is it really little to no work like now?

2. Is there any crush course/in person program trainings for me to learn, so I can do it more systematically?

3. I'm searching for my next deal. Since I'm really new to Commercial Real Estate, I want to find a broker that has investment experience that's able to guide me through...what is the best way to find these brokers? I'm in North GA area.

[Henry Clark]

Start a checklist.  Keep adding to it. As you have time start learning about each one.  

Congrats on your deal. Here are some bullet points to add to your checklist to learn.

Zoning

Planned zoning

EPA

Abestos

Dissect your contract.

NNN- what are they or you responsible for?
Hvac

Roof

Driveways

Parking

Just like housing, you need to set aside or budget for Capex.. Your $180k cashflow is not true cashflow if you don't factor in Capex. Get quotes on all your Capex items. Get replacement age on each.

Lease-  have a commercial realtor review.  
Your property is worth what it leases for and for how long.  By itself it loses money.  Key is your lease.

Evaluate the type of customer.

Do a stress test.  If you have 3 tenants take each by themselves out for 1 year. 2 years.  

Insurance-  what coverage do you require tenants to have?  Are you listed as additional insured?  Has to be renewed every year.  Have your insurer review their coverage.  What is your exposure.  If I slip in the shared parking lot who is responsible?

Insurance- personal property coverage

Insurance- clean up cost

Insurance- both you and tenant, Business income loss coverage

Fire systems- joint systems, who is responsible?

Signage?

Billboards?

Exterior lighting?

Security systems?

Easements?

Flood zone?

Sit down with a Commercial realtor and go through a normal due diligence process.

Look at your three tenants.  Develop a value add plan by unit.  Example is o e side on a retail road, or can you slice into 2,000 sqft spots for $1 per sqft per morning or more?  

[Evan Polaski]

@Michelle Mercer: first, congrats on taking what sounds like a slightly blind leap. It sounds like it is paying off in many ways.  Your experience with commercial vs residential is something I have heard over and over again.  Residential is all fine and good, and more approachable to many people, but also very management intensive, and often times lower returns.  But there are their own risks.

What should you be aware of? - you are seeing one such item: simple things in commercial arena can become much harder to handle.  You are now getting into commercial building code, which can be its own can of worms.  This is clearly jurisdiction dependent, but simple things like changing out a rusted/rotting door can become a long process if you are pulling permits.  Leasing will be more challenging, typically, as there are far fewer people looking for industrial space versus a place to live.  Leases can carry caps on the tenant portion of NNNs or annual increases on NNNs.  I.e. your large tax bill, while you can pass on to your tenants through their NNNs, you may be stuck with some if they have terms that only allow Taxes to increase no more than 5% per year and no more than 20% over life of lease (or something along those lines).  And on the same note, you need to cognizant, just like residential, if your tenants can actually afford those increases.  From the tenant's perspective, it is still dollars and cents.  If your NNNs get out of hand, they will start looking for new places as soon as their lease is up.

But, from my experiences in retail vs multifamily, the management on commercial is much lower from a day to day standpoint.  But when something comes up, the costs are much higher, typically.

Crash Courses - often times your best bet is in industry groups, i.e. NAIOP, which used to be industrial focused and now is more commercial development.  There is also ULI, CMCP, etc.  The masterminds and gurus tend to be more focused on residential, since (look at these forums) that is where a larger pool of possible customers lies.  You can find some, but I have not really seen any.

Typically in true commercial (and large multifamily) the brokers only represent sellers.  That being said, I have never had an issue getting coffee meetings with brokers to pick their brains (they are in the business of networking).  I would get on Loopnet and Crexi and just reach out to the brokers you see listing properties that are the scale and general areas you are interested in.  They will ultimately be representing the seller, but since there are far fewer buyers and sellers of industrial buildings, they always like to send out deals to the people they think would buy one of their listings.

[Henry Clark]

Start a checklist.  Keep adding to it. As you have time start learning about each one.  

Congrats on your deal. Here are some bullet points to add to your checklist to learn.

Zoning

Planned zoning

EPA

Abestos

Dissect your contract.

NNN- what are they or you responsible for?
Hvac

Roof

Driveways

Parking

Just like housing, you need to set aside or budget for Capex.. Your $180k cashflow is not true cashflow if you don't factor in Capex. Get quotes on all your Capex items. Get replacement age on each.

Lease-  have a commercial realtor review.  
Your property is worth what it leases for and for how long.  By itself it loses money.  Key is your lease.

Evaluate the type of customer.

Do a stress test.  If you have 3 tenants take each by themselves out for 1 year. 2 years.  

Insurance-  what coverage do you require tenants to have?  Are you listed as additional insured?  Has to be renewed every year.  Have your insurer review their coverage.  What is your exposure.  If I slip in the shared parking lot who is responsible?

Insurance- personal property coverage

Insurance- clean up cost

Insurance- both you and tenant, Business income loss coverage

Fire systems- joint systems, who is responsible?

Signage?

Billboards?

Exterior lighting?

Security systems?

Easements?

Flood zone?

Sit down with a Commercial realtor and go through a normal due diligence process.

Look at your three tenants.  Develop a value add plan by unit.  Example is o e side on a retail road, or can you slice into 2,000 sqft spots for $1 per sqft per morning or more?  

[Henry Clark]

Google commercial real estate youtubes

[Henry Clark]

At your next refi you want 5 year or 7 year period not 3.  Too much risk with a 3 year term.  

If your lease tenants leave, appraisal goes down, or interest rates go up, this puts stress on your refi.  

At year 2 I would refi.  Don't wait. 

[Michelle Mercer]

Quote from @Henry Clark:

Start a checklist.  Keep adding to it. As you have time start learning about each one.  

Congrats on your deal. Here are some bullet points to add to your checklist to learn.

Zoning

Planned zoning

EPA

Abestos

Dissect your contract.

NNN- what are they or you responsible for?
Hvac

Roof

Driveways

Parking

Just like housing, you need to set aside or budget for Capex.. Your $180k cashflow is not true cashflow if you don't factor in Capex. Get quotes on all your Capex items. Get replacement age on each.

Lease-  have a commercial realtor review.  
Your property is worth what it leases for and for how long.  By itself it loses money.  Key is your lease.

Evaluate the type of customer.

Do a stress test.  If you have 3 tenants take each by themselves out for 1 year. 2 years.  

Insurance-  what coverage do you require tenants to have?  Are you listed as additional insured?  Has to be renewed every year.  Have your insurer review their coverage.  What is your exposure.  If I slip in the shared parking lot who is responsible?

Insurance- personal property coverage

Insurance- clean up cost

Insurance- both you and tenant, Business income loss coverage

Fire systems- joint systems, who is responsible?

Signage?

Billboards?

Exterior lighting?

Security systems?

Easements?

Flood zone?

Sit down with a Commercial realtor and go through a normal due diligence process.

Look at your three tenants.  Develop a value add plan by unit.  Example is o e side on a retail road, or can you slice into 2,000 sqft spots for $1 per sqft per morning or more?  

thanks so much for this starter checklist. Indeed a lot of things to think about. 

[Michelle Mercer]

Quote from @Henry Clark:

At your next refi you want 5 year or 7 year period not 3.  Too much risk with a 3 year term.  

If your lease tenants leave, appraisal goes down, or interest rates go up, this puts stress on your refi.  

At year 2 I would refi.  Don't wait. 

I might be too naive here. But interest wasn’t a concern of mine since I financed it in the worst time possible and still got a pretty good rate. 

I had a pretty good relationship with my bank. I have a small business not related to real estate that generates about $2m/year; I also introduced him couple 7 digits businesses, so bank loves me for that.

When I needed the financing for this piece, they gave me 6% interest rate, half point,  prime was 8.5%!!

I did have to put in a personal and business guarantee. I don’t see the interest hike up too much more from what we are now. I don’t want to refi early to kill the relationship with the bank. I mean…they did gave me prime minus 2.5%…

Also, we bought the property at 11 cap as is without improvement, our rent currently is actually a bit below market so we can get tenants in before closing. If we do go for market rent, we shall be able to reach 12.5 caps, so even if interest does go up even further, we shall be able to handle.

Anything I’m missing? I want to hear all opinions. This is the part I feel im too inexperienced to manage confidently 

[Henry Clark]

If I misstate something or don't couch the statement in softer terms, I apologize ahead of time.  Don't know your full background.  I won't dance with my terminology.  Going to do this in bullet format.

1. SFH/MFH valuation is different than Commercial non residential. SFH/MFH is very much sales Comp based. Commercial non residential is more Cap rate based (which we don't use) and lease contract based (terms N/NN/NNN; term length and remaining; etc).

Action- as noted above, have your lease contracts reviewed by an attorney or Commercial broker.  Understand their weaknesses and strengths.  Your commercial asset is truly worth only what your lease contracts contain and the strength of the lessor.  Not the cost of the building. Understand the strength of your lessors. For an SFH/MFH you potentially have 1,000 potential renters or buyers. For Commercial you might only have 5. Your vacancy exposure is far greater. Perform stress tests on your business model. Dropping 1 of the tenants for a year or lost revenue. Have a commercial Realtor review those three tenants as far as their strengths.

2. Bank terms SFH/MFH is usually 15/20/25/30. Commercial has amortization periods of those terms but usually a 5 year balloon period. If you're on real good terms with your bank and both your personal and business guarantee is highly positive, they may give you 7 year period. 3 year balloon payment, your Bank has a question or wasn't being friendly. Ask them why they only gave you 3, they should give you 5 without you asking.

Action- find out why they only gave you 3 years.  Stress test.  Wait till you have 3 months before your 3 year period is up.  How much bandwidth do you have or bargaining strength to move banks or refi with your current bank.

3.  Use the lookup functions.  Read everything with @Joel Owen. 

4.  Financing- Understand why you got 6% from a business approach.  If you're going to do Commercial Syndications as noted in your Personal profile, you don't want your financing based on your personal assets or businesses.  Maybe to get started but not long term.  

5. Financing- per your personal profile, your sourcing funds from overseas. Make sure there is a hard Vetting process for your deal or buy box strategy. There is no one on BP or myself, if we didn't have previous CRE experience I would trust with a $1.75mm deal. Realize the original point of your post is to develop that background. But I question your ease of funding source at this stage of your entry. So, this is not taken personal, I wouldn't trust myself on my first CRE deal for more than $200,000. There are a lot of things that can go wrong Big and fast in Commercial versus SFH/MFH.

6. Buying at 11 cap. Understand why. What are terms of leases? What are Capex items coming up? EPA/Abestos/Brownfield issues? Property Tax impacts?

Congrats. Your deal and financing are truly great.  Just understand why.  That is part of your future deal analysis.

[John McKee]

you have to speak to a developer. You might want to check the X platform as it has a bunch of industrial guys that do this all day long

[Michelle Mercer]

Quote from @Henry Clark:

If I misstate something or don't couch the statement in softer terms, I apologize ahead of time.  Don't know your full background.  I won't dance with my terminology.  Going to do this in bullet format.

1. SFH/MFH valuation is different than Commercial non residential. SFH/MFH is very much sales Comp based. Commercial non residential is more Cap rate based (which we don't use) and lease contract based (terms N/NN/NNN; term length and remaining; etc).

Action- as noted above, have your lease contracts reviewed by an attorney or Commercial broker.  Understand their weaknesses and strengths.  Your commercial asset is truly worth only what your lease contracts contain and the strength of the lessor.  Not the cost of the building. Understand the strength of your lessors. For an SFH/MFH you potentially have 1,000 potential renters or buyers. For Commercial you might only have 5. Your vacancy exposure is far greater. Perform stress tests on your business model. Dropping 1 of the tenants for a year or lost revenue. Have a commercial Realtor review those three tenants as far as their strengths.

2. Bank terms SFH/MFH is usually 15/20/25/30. Commercial has amortization periods of those terms but usually a 5 year balloon period. If you're on real good terms with your bank and both your personal and business guarantee is highly positive, they may give you 7 year period. 3 year balloon payment, your Bank has a question or wasn't being friendly. Ask them why they only gave you 3, they should give you 5 without you asking.

Action- find out why they only gave you 3 years.  Stress test.  Wait till you have 3 months before your 3 year period is up.  How much bandwidth do you have or bargaining strength to move banks or refi with your current bank.

3.  Use the lookup functions.  Read everything with @Joel Owen. 

4.  Financing- Understand why you got 6% from a business approach.  If you're going to do Commercial Syndications as noted in your Personal profile, you don't want your financing based on your personal assets or businesses.  Maybe to get started but not long term.  

5. Financing- per your personal profile, your sourcing funds from overseas. Make sure there is a hard Vetting process for your deal or buy box strategy. There is no one on BP or myself, if we didn't have previous CRE experience I would trust with a $1.75mm deal. Realize the original point of your post is to develop that background. But I question your ease of funding source at this stage of your entry. So, this is not taken personal, I wouldn't trust myself on my first CRE deal for more than $200,000. There are a lot of things that can go wrong Big and fast in Commercial versus SFH/MFH.

6. Buying at 11 cap. Understand why. What are terms of leases? What are Capex items coming up? EPA/Abestos/Brownfield issues? Property Tax impacts?

Congrats. Your deal and financing are truly great.  Just understand why.  That is part of your future deal analysis.

These are SO great. Thank you! Truly appreciate it. I talk really direct to people and I love when people talk directly to me without dancing around. Please keep doing so. 

I know couple answers to your questions. I’m not confident/experiences to know if these make sense. Please evaluate. 

honestly I felt it’s pure dumb luck why we had this deal. Several things happened at the right time. 

I’ve been looking for a warehouse space for my other non related business for over a year and couldn’t find anything. I posted on FB to see if anyone has leads. Then someone (a commercial realtor, not representing the seller) from Facebook, sent me this property for sale that has one vacant space. The original plan was to purchase it and have my business occupy the vacant unit. But after doing the numbers, and realizing I can’t do SBA since doesn’t meet 51% occupancy requirement, I felt this is a really good investment. I didn’t intend to purchase it as an investment. 

1. I’m okay familiar with commercial valuation process. not an expert for sure. But I did have business buying and selling experience, I felt it’s similar. 
North GA Forsyth county markets calls a 6.5-7 cap now for industrial. Based on our current leases with all three units filled, the property should be valued at 2.6M, our leases are weaker (see below) so I’m not surprised it appraised at 2.4M. 
but when we bought it since it’s 1/3 vacant with lower rent, based on market’s 7 cap, it should be valued at 1.9M, which is how much it was listed. we bought it 1.7M but with pretty strong bank commitment letter and we offer to close super quick, in 45 days. I know they received way higher offers. And my bank indeed closed in 45 days. At closing, seller mentioned they needed the money to help other business’ cash flow. So I felt the 45 days closing helped me getting the deal? 

2. Our lease terms are not great. One of the tenant is actually seller lease back for only 1 year with options to renew after year 1 with 5% increase. We negotiated but they did not budge. Other two tenant are 3 years (the existing tenants) and 5 years (the new tenant we put in). So bank only went with 3 years term. Otherwise bank would go with 5. It’s 15 years amortization. bank will renew the loan with 0.5% fee after 3 years terms end if new leases are signed. 

I’ve talked to my investors about this, since bank gave us 6% (so cheap) we went with maximum bank is willing to lend. If they really don’t wanna not renew the loan, we together have the capital to just pay the balloon. If all my investors back out, I will sell some of my assets to pay it off. 

at the same time, vacancy rate for this type of building in the county is ridiculous, like 1% in the city and 3% in the county. I’m a business owner and I’m looking for a 2000-6000 sqft small flex/warehouse for my business for over a year, it’s been hard.

3. Leases: Georgia NAR (they call it GAR) actually has standard forms written by lawyers, used by realtors. There are standard forms for commercial realtors too. I used my FB commercial realtor for this whole process. I like him. Young, high energy guy. Hungry for business. He’s rather inexperienced but he’s the only one willing to work for me…I’m a newbie buyer. I asked his broker to review everything including insurance, TI, CAM etc, and I met with the broker several times. His broker is really well known for the area makes millions per year in residual commission. I can’t get that guy to show properties the same way this young guy did. I want a guy experienced like that to work for me though…it seems hard. Any suggestions would be appreciated. 

5. Investors - all family and friends known for long time, all accredited, all invested very small percentage of their assets into the deal. I need to correct my profile. They are not REALLY oversea people, they are US citizens/greencard holders but they are ethnically minorities, English is not first language and they weren’t born and raised here. We share same culture background.

These people used to buy those CA/NY homes with cash or buy investment with negative cash flow hoping it would appreciate…and filthy realtors would really took advantage of these people. But I helped them to realize there are other RE markets besides CA and NY…I coached them quite a bit with their RE investment (for SFH side), without getting any commission, consulting fee of any sort. I used to have realtor license but I don’t take clients. I gave business to others. Truly helping these folks for free. 

Most of them started investing in cash flowing RE because of me, and majority of them now own 5+ single family rentals now and already made good money with RE investment with my strategy. I’m a newbie in CRE but I’m pretty experienced SFH LTR investor. 😂 They trust me. I don’t have doubt about that. 

I only needed $600K downpayment but I actually received $1.5M verbal commitment within 24 hrs after I mentioned the deal in a private group chat. I had to reject a lot of people even. 

that to be said, I invested the most. I own 50% of the warehouse, 30% are from sweat equity, 20% my personal saving. Other investors owns 5-10%. I didn’t charge any syndication fees or even asset management fee, and I didn’t do a water fall, just did an equal split. So my investors are getting 9% on the dividend side and no cap/limit when we exit. I think they got a good deal too. 

Legal- I literally searched syndication lawyers on BP and I used one guy from <crowdfunding lawyers> to draft coupe hundreds of pages, multiple documents and filed with SEC and all that. I think I’m covered?? But honestly I don’t know much about syndication besides what my lawyers taught me..yet I already did one, and this contribute to my uncomfortable unconfident feeling.

not sure if anything above makes sense…I really felt it’s either dumb luck or its too good to be true and there’s a catch I didn’t know about, and this made me feeling very uneasy about the whole thing. I want to learn AS much as I can to get rid of this feeling.

Please, poke holes. I want that. 

Also, since you are a builder, i want to ask for some suggestions. I really hope to be a builder, for industrial multi units properties…we have such shortage of those, my network has a lot of business owners I can rent these to. in the immediate term, I want to buy land and build one for my own business. any good ideas how should I start to learn about new construction or being a builder?? I have a commercial contractor with connections in the county that already did some great work for this warehouse  

I do have another question also about CAPEX and reserves…building has a new metal roof, it's industrial mental frame, metal beam, shell condition flex/warehouse, no HVAC, NNN leases, new septic. I'm paying to converting it from well water to city water and fixing the parking lot broken concrete. But after that, I have a hard time thinking how much money I need to save for capex? Those mental beams should last longer than my life, those new metal roof should have 50 years on them?

And how much money I need to set aside for reserves in case of vacancy. Again, as long as  2/3 of units get rented, our mortgage is covered. And our leases ending for three tenants are 1 year; 3 year and 5 years. So not at the same time. Currently on the market there’s low vacancy rate but who knows if we go into a huge crush and all three of them went belly up (they all have been in business for over 10 years

At first I thought 12 months worth of mortgage as reserve but my banker said he thinks 6 months. Thoughts? 

[Henry Clark]

You should be adding each concept to your checklist:

Tenants:

By tenant what is the square footage?

No names, but what type of tenant by the square footage above?

The property value is based on the leases, as you're noting above.  

Value Add:

Resizing unit sizes.  Moving to 2,000 to 3,00 square feet.  What is your current rental $$/sq ft by tenant.  You want to look at improving.

What space is available outside?  Parking revenue, food truck space, Ice Machine space rental, Billboard potential, 

Go to month to month on part of your square footage.

Do you have docks, check on Frito lay, power drink, flower, tortilla, Snap on Tool, etc distribution center.

Solar panels for non NNN usage

Expense reduction- hardscape landscaping, have your insurance company do a review, 

U-Haul- self rental location.  You don't do anything, or rent out lot space to someone.

Capex:

Have an annual PM list, like for your rentals.

Add annual Additional Insured to that list.

Reserves:

Lessor personal guarantees?

Insurance- Business income loss coverage.  Shoot for 18 months for each to have.

Basically, you don't want me or someone to itemize items to review.  Make a checklist, have people look at the checklist.  Then hit every item.

[Ronald Rohde]

Figure out your buy box. Then keep that narrow and keep buying. Its fun and simple.

I own 5 properties and self manage it all (I have staff, but still very easy) Single tenant NNN, just random needs, but never a headache.

What does your legal team look like?

[Michelle Mercer]

Quote from @Ronald Rohde:

Figure out your buy box. Then keep that narrow and keep buying. Its fun and simple.

I own 5 properties and self manage it all (I have staff, but still very easy) Single tenant NNN, just random needs, but never a headache.

What does your legal team look like?

 Would love to learn about your legal service - like mentioned above, I have a syndication attorney that helped with the syndication process, and a local closing attorney. Would love to know more about what's needed for my legal team.

[Ronald Rohde]

Quote from @Michelle Mercer:

Quote from @Ronald Rohde:

Figure out your buy box. Then keep that narrow and keep buying. Its fun and simple.

I own 5 properties and self manage it all (I have staff, but still very easy) Single tenant NNN, just random needs, but never a headache.

What does your legal team look like?

 Would love to learn about your legal service - like mentioned above, I have a syndication attorney that helped with the syndication process, and a local closing attorney. Would love to know more about what's needed for my legal team.

We are a transactional RE firm. LOI, PSA, Amendments, we review due diligence, leases, loan documents, LLC formation. Vendor reports, etc.

[Michael K Gallagher]

Sounds like a hell of a deal @Michelle Mercer I've done some warehouse deals and if you are getting into development I'd put some thought into your ideal tenant and what they are doing or storing.  For instance we work with a flooring supplier and in their warehouses they absolutely must have sprinklers for their inventory, but depending on the jurisdiction and the material being stored there may be specific sprinklers required.  There are also regulations around square footages and sprinklers.  Also clear height is something to consider when thinking about your ideal tenant, and if they need dock doors or drive in.  Just some thoughts from being on the "shopping end" of warehouses. 

[Ronald Rohde]

Any update? Have the tenants been paying on time?

Did you ever create a list of capex? Building survey?

Start creating a list and budget for when a tenant vacates. You need to know market rent and what condition to bring your building space up to in order to have the shortest down time as possible.

Preparing now will avoid stress later.

[Michelle Mercer]

Quote from @Ronald Rohde:

Any update? Have the tenants been paying on time?

Did you ever create a list of capex? Building survey?

Start creating a list and budget for when a tenant vacates. You need to know market rent and what condition to bring your building space up to in order to have the shortest down time as possible.

Preparing now will avoid stress later.

So far so good from the tenants. The one year tenant (seller leaseback) is NOT going to renew, but seems we have very high demand for this type of property - we got 3-4 interested parties without marketing, but their lease will not end until September of 2024. I'm not too too concerned about it - even if we have vacancies, we have about 6 months of expense, the other two tenants' rent can cover the debt service with some surplus.

[Michelle Mercer]

Quote from @Michael K Gallagher:

Sounds like a hell of a deal @Michelle Mercer I've done some warehouse deals and if you are getting into development I'd put some thought into your ideal tenant and what they are doing or storing.  For instance we work with a flooring supplier and in their warehouses they absolutely must have sprinklers for their inventory, but depending on the jurisdiction and the material being stored there may be specific sprinklers required.  There are also regulations around square footages and sprinklers.  Also clear height is something to consider when thinking about your ideal tenant, and if they need dock doors or drive in.  Just some thoughts from being on the "shopping end" of warehouses. 

 That's an awesome point! I want to get into multi-unit flex development. Now time to network with potential tenants!

[Ronald Rohde]

Quote from @Michelle Mercer:

Quote from @Michael K Gallagher:

Sounds like a hell of a deal @Michelle Mercer I've done some warehouse deals and if you are getting into development I'd put some thought into your ideal tenant and what they are doing or storing.  For instance we work with a flooring supplier and in their warehouses they absolutely must have sprinklers for their inventory, but depending on the jurisdiction and the material being stored there may be specific sprinklers required.  There are also regulations around square footages and sprinklers.  Also clear height is something to consider when thinking about your ideal tenant, and if they need dock doors or drive in.  Just some thoughts from being on the "shopping end" of warehouses. 

 That's an awesome point! I want to get into multi-unit flex development. Now time to network with potential tenants!

 Check out Flex Space University, Hamza does a class for flex development.