industrial development assistance

[George Fuller]

I'm in a red-hot market for industrial spaces right now. I understand real estate in general I don't understand the nuances of commercial/ industrial development which it appears more and more like that's what I'll need to do. I was wondering how people get these types of projects off the ground. if anyone in NY knows developers or investors looking to deploy capital in Ny for an industrial development or has experience in this field feel free to reach out!

[Henry Clark]

1.  Look for a large RE firm in your area for that type of product.

2.  Start talking with an Engineer firm that does that type of work.  

3.  Start talking with a Commercial banker in that area who has done this.

The problem is your working with a moving target.   The further up the development path the more you will or won’t participate.

Step 1.   You need to lock down the property.  Either buy it or put an option.  The option will have a time limit.  Or have an extension clause.  The problem with an option is the time limit.  A commercial project can take some time to come to fruition 1 to 3 years.

Step 2.  Engineering and cost estimates.  This is the next step if you want to participate more.  Depending on the project this could be $50,000 to $100,000.  Plus if the building isn’t engineered by the supplier then additional engineering costs.  

Step 3.  You need to identify all of the killer issues sooner than later.  If you haven’t done this before, then you will have to pay the Engineering firm.  

Step 4.  Start

Working with the Commercial Realtor to identify the rental rates, demand and competition.

As you’re doing all of these do Risk assessments.  The dollars are big.  The misses are big.  Understand your risk before you start.