Industrial Development (warehouse + office)

[Meg Epstein]

Anyone interested in warehouse developments? Looks like we can buy and build to a 9% cap. My husband owns a metal pre-engineered building Company that builds these buildings. 

Looking at Building a 40,000 sqf office / warehouse. Broker says he’s got a line of interested renters and potential buyers because nobody is building these.

Seems this sector is extremely underserved. 

[Jonathan Clark]

I would recommend building the shell and not finishing out the office space until you have a tenant with a signed lease.  Each tenant will need a different % of office to warehouse space and potentially a different level (class A vs Class B) of office.  I'm in a smaller town in SC and it took me 11 months to fill a 15,000 sq ft warehouse just off the interstate. I had lots of interest but everyone needed something slightly different.  I was willing to up fit or change as necessary but nobody wanted to pull the trigger.  Finally got a great tenant but it was a long wait.

At another property, I have "flex space" with much smaller units 1,000 - 2,000 sq ft with basically a roll up door, a walk door and a bathroom.  I have no problem keeping them rented and am looking at adding more units of this type on the same property.