Investing in Flex Space (& Running the Numbers!) w/ Hamza Ali
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- čas přidán 16. 07. 2024
- Flex industrial is a wonderful side of commercial real estate to invest in - especially for beginners since the asset is typically easier to manage with low-maintenance tenants. Today, we're diving into everything you need to know about flex space for beginners with Hamza Ali, who is a seasoned commercial and residential real estate investor with an investment portfolio of over $270M in flex space developments in Texas.
// Learn how to confidently buy your first property with my investment program:
www.crecentral.com/
Get Tyler's game-changing commercial real estate tools and resources: www.tylercauble.com/resources
// Consult with Tyler
www.tylercauble.com/consulting
// Get the underwriting models we use to run numbers on every deal:
www.TylerCauble.com/models
Check out Hamza's event, Flex Space Connect, here: www.flexspaceconnect.com/
Will do !
Been following your material hard and can't get enough.
Make it a great day!
Bill
😎👍
@@billturner1960 I love it!
Really great to see you two sharing ideas together Mr. Cauble. Hopefully this will continue as you're both All-stars!
Thank you very much again!
Bill Turner
😎👍
Absolutely, Bill! Glad you enjoyed the conversation 🙌🏼
Excellent episode
Thanks, Charles 🙌🏼
Good content. Thanks, fellas.
Anytime! Glad you liked it
Wow, great guest!
👊🏼👊🏼👊🏼
Learned a lot & now has me questioning on what assett to invest in the future!
Right?? Now I gotta find me some flex properties to develop
Ha! Can y'all move the event forward? That's the day my first kid is being born.😂
😂 congrats!
Tyler - What are you seeing as $/sf to build flex space in Nashville's area before adding on the tenant buildout? Assuming it still needs MEP before tenant buildout, but I'm not sure. I'm a residential builder/developer in Nashville.
Tyler, awesome content and great work so far in the past several years. Been following you for some time. Curious to know where i can find information on the conference coming up in November please. Btw, my channel has nothing to do with what i do as a career. In fact, I'm a CRE broker, investor and CCIM designee. Would love to chat with you sometime. And congrats on the NAIOP AWARD! 👍
Thank you! Learn more about flex space connect here: www.flexspaceconnect.com/
Good luck finding industrial land under $5 psf that commands $16 - $18 psf in rent. Unless maybe you’re renting to tenants that are being turned down by other business parks because of oil drip risk or heavy parking demand (exactly the types he mentions). Garage condos are going up because the rental model doesn’t pencil out. Land to rent ratios are just too high.
We found a deal not even an hour outside of Nashville off the interstate that checks these boxes. It’s not all that difficult to find, you just have to know what you’re looking for
If you move forward, please keep us posted. My guess is the construction bids will kill the deal. I own a 23 unit business park that was built in ‘82. I have been looking to develop a new project but it’s proving to be extremely difficult. Have looked at markets all over the country but the numbers don’t make sense.
@@CamperMan727 for sure - we’ll do videos on it if we get it
Great interview! 👏 do you necessarily have to buy and develop or can you rent out a space and create this as well ?
You could definitely do that, though I would be careful about rental arbitrage. That basically becomes the coworking model and it can be tough to maintain occupancy (and, therefore, profitability) unless you’re really on top of your marketing game
Man Alive
It was a great conversation!
What are the terms of the leases usually? Riskier than residential since vacancies are longer and higher cost to enter?
Mg or nnn usually 3-10 years
Riskier, maybe. But it really depends on how you approach your investments. In my opinion, I think it’s less risky because we know how to handle tenant move outs and can plan 6-12 months in advance of them instead of 30 days. Definitely a lower cost of entry than multifamily and slightly higher than residential
@@TylerCauble can you elaborate on lower cost of entry than multi family? because you're buying a shell so it's cheaper than multi family?
@@IWBVS Less plumbing, electrical, etc. I have seen spec projects build a reception, office and a bathroom in the front no more than 20% of the space and the rest being warehouse.
I have a 47500 sqft concrete building, on two acres that would work perfect to build out to flex spaces how can I get financing to have spaces ready.
Sounds like a solid opportunity! I have a video on how to finance CRE - check that out here: czcams.com/video/SP7Y3hfxsRU/video.htmlsi=P9gg3MeE_s1Ga_F1
Do city code require sprinkler system for flex spaces
They can - it depends on your local municipality and the size of the buildings. I know a lot of developers will keep their flex buildings to under 10k sf to avoid sprinklers but I’d check local codes
How can I get on the phone with one of you guy? Im curious about a few thing and have some questions. Thanks
You’re welcome to book a call with me anytime here: calendly.com/tylercauble/30min
What is the typical % the banks will lend on these projects.
It’ll really depend on your team, financials, and plan, but I’d estimate somewhere between 50% to 75% right now
Is there such a thing as micro flex spaces?
I'm sure there are! They're a great idea