Investing in Flex Space (& Running the Numbers!) w/ Hamza Ali

[@TylerCauble]

Check out Hamza's event, Flex Space Connect, here: www.flexspaceconnect.com/

[@billturner1960]

Will do ! Been following your material hard and can't get enough. Make it a great day! Bill 😎👍

[@TylerCauble]

@@billturner1960 I love it!

[@billturner1960]

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 😎👍

[@TylerCauble]

Absolutely, Bill! Glad you enjoyed the conversation 🙌🏼

[@alstenmart]

Wow, great guest!

[@TylerCauble]

👊🏼👊🏼👊🏼

[@CamperMan727]

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.

[@TylerCauble]

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

[@CamperMan727]

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.

[@TylerCauble]

@@CamperMan727 for sure - we’ll do videos on it if we get it

[@charlznunnally]

Excellent episode

[@TylerCauble]

Thanks, Charles 🙌🏼

[@lukeocyte444]

Good content. Thanks, fellas.

[@TylerCauble]

Anytime! Glad you liked it

[@remsatroy]

Learned a lot & now has me questioning on what assett to invest in the future!

[@TylerCauble]

Right?? Now I gotta find me some flex properties to develop

[@Juvvgarcia_]

Great interview! 👏 do you necessarily have to buy and develop or can you rent out a space and create this as well ?

[@TylerCauble]

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

[@IWBVS]

What are the terms of the leases usually? Riskier than residential since vacancies are longer and higher cost to enter?

[@harrylawrealestate]

Mg or nnn usually 3-10 years

[@TylerCauble]

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

[@IWBVS]

@@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?

[@harrylawrealestate]

@@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.

[@kdp516]

I heard commercial tenants can easily put bankruptcy and exit. One person can open thousands of LLCs and keep doing this. Definitely it's huge risk. High risk, high profits. Never saw low risk high profits in real world

[@-bu6kzL]

Ha! Can y'all move the event forward? That's the day my first kid is being born.😂

[@TylerCauble]

😂 congrats!

[@mattdonaldson4439]

Is this 85 to 115 estimate to build the building including concrete or no?

[@TylerCauble]

It does, that’s the all-in cost. Land is really the variable here

[@mandog1981]

Do city code require sprinkler system for flex spaces

[@TylerCauble]

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

[@mandog1981]

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.

[@TylerCauble]

Sounds like a solid opportunity! I have a video on how to finance CRE - check that out here: kzbin.info/www/bejne/iYGaimaem92miLcsi=P9gg3MeE_s1Ga_F1

[@MovingUp7]

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.

[@TylerCauble]

Anywhere from $85 to $115/sf, depending on what you're doing

[@MovingUp7]

@@TylerCauble Okay I need to drill down more into finding subs then. I was coming up with closer to $150. I think the metal framing alone was 30/sf and up.

[@kdp516]

I am trying to build. Lot of unknown variables. Even getting sewer connection is highly impossible in Charlotte area

[@chadmharris7061]

Is there such a thing as micro flex spaces?

[@TylerCauble]

I'm sure there are! They're a great idea

[@GLLHamp]

What is the typical % the banks will lend on these projects.

[@TylerCauble]

It’ll really depend on your team, financials, and plan, but I’d estimate somewhere between 50% to 75% right now

[@RichWithCars]

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! 👍

[@TylerCauble]

Thank you! Learn more about flex space connect here: www.flexspaceconnect.com/

[@daminiel1]

How can I get on the phone with one of you guy? Im curious about a few thing and have some questions. Thanks

[@TylerCauble]

You’re welcome to book a call with me anytime here: calendly.com/tylercauble/30min

[@kdp516]

​@@TylerCauble 500$ per 30 minutes? Any other staff in your office where we can do introduction talks with reasonable charges? And then we will schedule call with you

[@harshac8438]

thank you for the information.Can I get developer contacts

[@leeforsyth2036]

Man Alive

[@TylerCauble]

It was a great conversation!