Quote from @Thomas Keigwin:
Morning Jonathan,
Thanks for the response. I am a brand new real estate investor with a couple business partners exploring our real estate investment options. I heard about flex spacing in a passing conversation at a recent event. I hoped bigger pockets could connect me with someone who could help me dive into the real life details without the normal youtube spin trying to sell a book or program.
From what I've read flex spacing is a small retail/office space attached to warehouse space that can be separated into different sizes depending on the tenant needs.
We are thinking about an initial 10k sq ft project in Middle Tennessee but are willing to travel a bit if the market is right (Kentucky, Georgia, Alabama, and Mississippi).
We are looking to rinse and repeat if possible.
Thomas, I'm developing a flex/warehouse park right now in GA. Happy to help answer any questions. Flex Space has a very wide range of tenants/uses. Anywhere from small contractors, pest control, welding, even crossfit, etc. I am targeting the small contractors that need one maybe 2 offices and a couple thousand sqft of warehouse.
The returns I've seen as far as cash flow are decent, but what attracted me are the typical long term leases with rent escalations every year. Longer term leases keeping cap rates somewhat low and stable when selling.
The project I've put together is one 9000 sqft building and one 12000sqft building. I will be pre leasing soon, but anticipate splitting each building into 3/4 tenants. I also love this space because of how customizable the space is for tenants.
