Looking for insight on building new"Small Industrial Units" 2500 square feet or less.

[John Hanewich]

Hi all,

I am running through proposed ideas for my first real estate deal. I currently live in Southern Maine and am looking to construct some kind of new project rather getting into rehabbing existing residential

Proposed Land Budget 100-200k

Construction Budget: 400k

All in 500-600k.

I have found that if I do the site work myself including clearing, septic and digging the foundation is that i can sub contract out either steel or a Lester style building (50x150) for around 300k installed with insulation and power , divided into three 2500 square foot units.  These would be bare rental units where tenant builds to suit or we could with appropriate rent charge.

I have received recent quotes for LESTER building around 125k for a 40x80 so I'm doubling that , concrete not included.

I feel like i can't loose with this strategy even charging $2 a square triple net for these units ? Is anyone else developing in this space?

My numbers might be off a little bit but please consider I am doing the site work. Looking for feedback on this. I feel like I might even come out ahead on the appraisal after the build is complete and walk away with my initial investment ?

[John McKee]

two things I have learned.  1,200 is a sweet spot for demand, and if you do have a large unit of 2,500 get a couple of them zoned for auto.  Big demand for auto repair or auto accessories.