Developing Flex/Warehouse Space in Austin TX suburbs (Leander)

[Gary Parente]

Hey BP team - I am kicking around the idea of buying a few acres in commercial zoned land and putting up a basic steel building (maybe 10k sq ft?) with 4 walls and a roof and trying my hand at flex/warehouse space. I have a buddy who did this recently in Leander TX (Austin suburb) primarily for his own business, but rented out the other side and said it was incredibly easy. Leased it before the building was even built. 

I own 4 SFH rentals and am comfortable with tenants/landlording. I even have some good equity in those 4 houses that I can leverage. Anybody done this recently in Austin? Anybody tried and failed? Any general advice?

I am hearing 10-20% down to get started and 5-10 year lease terms. Are builders super scarce right now in Austin for a simple build like this?

[Cole Bigbee]

@Victor Steffen While  LoopNet and CityFeet are always a good place to start, I feel it's best to get with a local agent that only specializes in this type of space. For a 10,000 sqft building that could be split up, your tenant base will be more localized and for smaller businesses vs a 50,000 sqft building that would most likely go to a regional or national tenant. If you drive around in a local industrial park, there will probably be one or two agents with signs up on multiple buildings, start with those guys/girls to see. Also, a local industrial developer can give you some good insight on who they use and how they market in their area.

Hope this helps.