Industrial real estate is extremely lucrative, especially in today’s economy. In fact, there are double digit returns forecasted for this asset class. Industrial real estate has historically performed well in all stages of the economy, including during recessions. Now, as you guys know I develop industrial real estate, flex space real estate if we want to be specific. In order to create success and be the disruptor in the space, you have to always have a strategy. I am going to share my industrial real estate investment strategy with you guys today.
There are 3 parts to my strategy:
- How I Plan My Developments
- How I Build My Developments
- Keeping Up With Trends
Let’s Get Into It:
How I Plan My Developments
Now that I am developing an extremely large project, 20 million dollars and more, I have realized that, contrary to my usual plans, I now need to cater to flex space tenants as well as larger tenants. These larger tenants are looking for 10,000-20,000 sq ft. I need to plan my developments so that a portion is dedicated to these larger tenants. My tenant profile for my industrial real estate developments would be 80% flex space real estate, and 20% for the larger, single tenant buildings. I plan to keep the larger 20,000 sq ft buildings in the back. For my next upcoming development I am actually creating 5 of these larger spaces, so 100,000 sq ft of that, and 100,000 sq ft of flex space real estate.
Why Am I Doing This?
I’m doing it because of the size of my new developments. To get all of that space absorbed will be difficult, so in anticipation of this, having the different sizes of spaces will help me get all my developments at 100% occupancy. This is just ONE of my strategies.
How I Build My Developments
I would like to design my flex space real estate in such a way, which I was not doing in the past, so that tenants who have indoor sports facilities, gyms, or things of that nature can use them by eliminating columns in the middle of my spaces. I had not realized the limitations these columns were giving my tenant profile, and I plan on changing this in all my future developments so that I am not limited by my design.
Keeping Up With Trends
I am working with my STARchitect, Yusra Ali to create flex space real estate in a way that will enrich the community that these developments are going into. By focusing on the aesthetics and trends with my design, I will actually be able to charge a premium on my properties; therefore, getting a better return on my investment. Check out some of the models for my new properties 👇🏼
If you would like to get in on my industrial real estate investment strategy, invest with me. I also have a mastermind program where I take my inner circle through the process of creating their industrial real estate investment strategy, and give them the first heads-up on current trends and data on flex space real estate. Learn more about my mastermind, Flex Space Untapped.
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