All Forum Posts by: Cole Bigbee

@Account Closed

For me, industrial real estate is a great property type! With you being on the outskirts of the Atlanta market, I would think there is a lot of opportunity to do well with some industrial properties. Industrial is my specialty, so let me know if I can help in any way. 

@Justin Onyeador

Everyone has made good points on what your returns should possibly look like. Also something to consider is the age of the facility, and is there room to value add to the property? Meaning is there extra land with the deal, so you could add some additional units? Does the facility have cameras, a good exterior fence, and electric gates? These little items can make a big difference on your returns.

Hope this helps!

CB

@Bill Snyder

You might consider building some small service type buildings or 'Hobby Shops' as like to call them. 30'x30' or 30'x50' stand alone buildings with 1-roll-up door and 1-small office w/bathroom. If the housing market is strong where you are there are probably plenty of service providers that would pay you close to $1,000 a month for a small shop. From the sounds of your location, this might be a good fit if there isn't anything similar near by.

@ Joshua Watts You are spot on! I sell self storage building kits and can do both RV/Boat storage steel buildings as well. When I asked the developers why they don't do more RV/Boat storage I get the same reply as what you posted!

@Erik Whiting My family owns a metal building manufacturing company and has been in business since 1962. I can assure you that metal buildings last as long as you want them to. Some major maintenance items to consider are as followed: 1.) Roof-Is it screwdown or standing seam? If it is a screwdown, you might have someone check and replace the screws as needed. Overtime they work themselves out due to expansion and contraction of the metal(Leak areas!). If the building was built in 1991, the panels themselves should last for another 15-20 years. If it is a standing seam, you shouldn't have to worry about it unless you spot a leak. 2.) Wall panels. If you have some that are damaged, given the building is fairly young for a steel building, you should be able to find a replacement panel nearby. Standard wall panels are 36" wide. If it is just color fading, you can paint them every 20 years. 3.) Insulation-If insulation is torn on the inside, they make patch tape for that. You can also get a liner panel for the wall to cover up the insulation and framing, which also gives it a nice, clean look. 4.) Primary and Secondary framing members. If you spot areas where metal has been corroded(not rust) please seek a qualified metal building erector or engineer to investigate the area. If you have a tenant that is dealing with corrosive chemicals, it can eventually eat away at framing members so be careful on who you lease to and what their plans are. All metals buildings come with a primer coat on framing members and will fade over time but I would not worry about priming/painting any of the framing members. My primary focus is purchasing/developing metal buildings for the light industrial market, as the options are almost unlimited as far as what you can do with a metal building. Please let me know if I can help you in anyway. CB

@John Vanhara What is the square footage of the buildings and is a masonry product required on the walls? Depending on the sqft of the building a different exterior application could yield significant cost savings. As far as the cost doubling, was it more on the building materials side or permits, fees, etc..

@Steven Segal The light industrial/flex style space has been great to me. Usually anything 12,500 sqft or less leases relatively quickly in the area I operate in. With your location in Florida, I would think demand would be high for these types of spaces. As @Kevin McGrath mentioned, you wouldn't get as long as lease with these types of tenants but I find them relatively easy to turn over as your normally only looking at less than 1,000sqft of office, with the rest warehouse space. One of the best ways to find out what demand is, is to ride around in an industrial park and see how many of these spaces are empty, if any, then find out why! There are normally commercial agents in these markets that specialize in this type of space that could give you great insight as well. Hope this helps!

@Dominique Palmer Sprinkler systems are determined by location (county or city limits), building size and occupancy types. I wouldn't necessarily call them a value added perk as some companies don't require them, where some do. I've found in the area I'm in, the same size building with a sprinkler system and without brings in the same lease rate regardless. Sprinkler systems are very expensive and have yearly maintenance involved with them. Personally I'd stay away from them if I were you, unless you have a national tenant that is willing to do a long term lease. 

For me personally I want someone who is not going to waste my time and will tell me like it is, whether I want to hear it or not. If the broker does not think my property will bring what I'm asking, I want them to tell me! Communication is key, so if there is something I can do the property to up my chances of success I want them to tell me that as well.

  They also need to have a professional website that will showcase the properties and utilize other websites such as LoopNet as well. I'm also a big fan of brokers who place a nice, big, well-read sign in front of the property, so the passer-byes can easily read it.

@Remington Moore Check out Graham and Company in Huntsville. Industrial is one of their specialties and they are very knowledgeable in the Huntsville/Madison/Decatur/Athens markets. They have leased a few buildings for me in Madison. Let me know if I can help in any way!