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Why He Chose Flex Space for His First Development
Description
Key Takeaways:
Alec transitioned from residential to commercial real estate, focusing on industrial and flex space development.
His first commercial deal was a 54,000 sq ft industrial property in a tertiary market, purchased through creative financing with partners.
Raising capital is often the most challenging part of development, more so than the construction process itself.
Alec chose New Braunfels, Texas for development due to faster site plan approval times and favorable building regulations.
He focuses on building flex space under 12,000 sq ft to avoid expensive sprinkler system requirements.
His current project involves four buildings with a total development cost of around $10 million, targeting rental rates of $16-$20 per square foot.
Key lessons learned include the importance of:
Networking
Understanding market niches
Managing people and relationships
Creative financing
Thorough due diligence