~150,000 SF of triple net flex space.
This market is emerging, and still fragmented. Competition is weak.
Retail is overrated.
You can cut construction cost in half building metal light industrial spaces and still rent them easier than retail.
The key is overhead roll up doors.
It’s almost hilarious how easy these are to rent.
You don’t need to even paint the walls.
No water heater, no A/C.
Just give them a metal box with a sink + toilet, and they pay you more rent per SF than a luxury house.
Combine that with the fact commerical is valued not on comps like residential, but instead cap rates, and you have a predictable money printer.
Commercial property value is literally a 2 variable equation:
NOI / Cap Rate = Value
This property brings in $1.8mm NOI / 7% Cap = $25.71MM
It’s also for sale if you are interested but that’s not the point here.
The point is if you want to scale large sums of value with predictable execution, look into developing metal buildings.
Follow to learn more.
Who owns the building you’re eating at?
Who built the skyscrapers you see downtown?
Maybe some old rich dude, maybe some big corporation.
But how did they get to that point? 🧵👇
As Naval famously said, "play long-term games with long-term people."
So, as soon as possible:
Start the business.
Begin the relationship.
Embark on a journey for knowledge.
If you ever want to start a business, I'd get started.
You have plenty of hard lessons to learn, and the reality is you have to learn them firsthand.
Ask me how I know lol.
Stop waiting and get them over with.
The first five years are brutal, if not impossible to survive.
Best to get that clock started ASAP.
However, once you reach escape velocity, it all becomes worth it.
@developassets Wow, if you do land clearing and concrete yourself no developer can compete with you lol. Curious if you also assemble the pemb. Technically if you have measurements you can get local metal works shop to just create the prefab no?
@hoskydex i have a few amazing crews that i run to get the erections done myself. whether i weld on-site or use PEMB depends on the project size.
you're right, i feel bad for my competitors lol.
@hoskydex yes we buy land then use our own machines and labor to clear it. Another way i can develop for half the cost of competitors.
And yeah got a mulcher which was good for brush but we sold it tbh.
For the size lots we do it didn’t make much of a dent. Just a nice to have .
CRE development will be the last thing AI replaces.
But it will... once it's embodied and capable of general intelligence.
The developers of today will be grandfathered in.
They'll run operations from the beach while land becomes one of the most scarce resources to exist.
Replacing 6,000 LF of silt fence to remain compliant with TCEQ storm water pollution prevention plan requirements.
Walking the perimeter with geotag certification software to document before vs. after.
These are the little things that create equity for developers.
The timeframe of illiquidity, permit and construction risks, weather, nosey neighbors...
Buying raw land, taking that dirt and adding value from thin air is why commercial development makes hundreds of % in profit when done right.