Contractor Incubator Buildings- Input needed

[Henry Clark]

Have saved the front of one of our properties to do "Contractor Incubator Buildings".  Rental units for contractors.  Have a few specific questions.  Have most of the build, demand, finance and location questions already addressed.  If there is something specific to this type of customer or lease please note.  Mainly do Self Storage, would greatly appreciate your input.  Thank you.

1.  Insurance coverage- recommended companies and any specific types of coverage beyond normal Liability and property.

2.  Electrical- build to suit, or install ahead of time.  200 amp services?

3.  Rent terms- I want as little work as possible. Should I go short (1 year) or long (3-5 years) NNN. Also want a clean operation on the outside. Want terms that keep me in control of the external property, to where I can terminate the lessees if they keep falling short on cleanliness.

Overview:

a.  100 by 400 ft building; 16 foot high.

b.  14 x 14 door, with walk thru steel door.  Insulated.

c.  Metal frame; seamless roof. Heat transfer barrier to beams.

d.  6 inch concrete, moisture barrier,

e.  Building will be "able" to be segregated on the two ends.  25 ft wide by 40 ft deep.  4 of those along each end.

f.  Middle will be along the front 25 by 60;  (400-40-40=320).  Will be 8 bays across the front with 20 ft extra in one bay, with extra 14 x 14 door.  Back of building will be the same but 40 ft depths.  Bays can be combined as needed.  example:  two 25 x 40's; can be leased as a combined 50 x 40 and so forth.

g.  Water and Plumbing to each.  No office space built out to begin with, build to suit.

h.  Current market running $1 per sqft per month.  Lowest I have seen is $.85/sq ft. 1mm metro population.

Potential customers, anyone.  Electricians, plumbers, landscape, car enthusiasts, etc.