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Sean York
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Flex Space Development

Sean York
Posted Sep 3 2023, 21:04

Thoughts on Flex Space Development as a niche strategy in the Texas Markets.  Don't hear much about it.   

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Cole Bigbee
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  • Tuscumbia, AL
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Cole Bigbee
  • Developer
  • Tuscumbia, AL
Replied Sep 4 2023, 07:22

@Sean York I think it is a great play. You just need to get specific on a certain city in Texas and narrow down the areas that are properly zoned for the flex space inside that area. There is quite a bit of flex in Texas already. Drive those buildings and notice the ones that are rented and how they are setup vs the ones that are not rented. Nothing wrong with copying someone else's strategy that already works.  

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Henry Clark
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Henry Clark
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Replied Sep 4 2023, 07:32

Read all @Cole Bigbee posts.  We have a project in with the city permit group being reviewed.

Just recognize you’re talking bigger dollars and infrastructure.  If you get to the budget phase it’s more than just the building.   Storm pond, storm sewer, fire hydrant, fire suppression systems, fire walls, electric metering and voltage (3phase???), permit fees, engineering fees, road costs, utilities to the front entrance, soil tests etc.         

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Henry Clark
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Henry Clark
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Replied Sep 4 2023, 07:53

Check San Antonio out.  Loop 1604 and SH181 intersection area. 

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Jamie Boyd
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Jamie Boyd
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Replied Sep 27 2023, 14:21

What is it costing per sq ft there in Texas currently to to a full build out minus the land? I was just quoted ballpark on a 10k building 1.2 to 1.3 mill just a shell mostly with only 2 bathrooms.

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Cole Bigbee
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  • Tuscumbia, AL
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Cole Bigbee
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  • Tuscumbia, AL
Replied Sep 27 2023, 18:12

@Jamie Boyd That sounds a little high for only the shell but unless you have some preliminary drawings to work off of, you're always going to get a high budget. Best thing to do is spend a few bucks and get some drawings done so you can get more "hard" numbers. Cost on a 10K sqft shell(not including land) should be around $75 sqft. This would include about 1,000sqft of basic office and restroom and the warehouse area being semi heated only. No AC.

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Jamie Boyd
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Jamie Boyd
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Replied Sep 28 2023, 04:56
Quote from @Cole Bigbee:

@Jamie Boyd That sounds a little high for only the shell but unless you have some preliminary drawings to work off of, you're always going to get a high budget. Best thing to do is spend a few bucks and get some drawings done so you can get more "hard" numbers. Cost on a 10K sqft shell(not including land) should be around $75 sqft. This would include about 1,000sqft of basic office and restroom and the warehouse area being semi heated only. No AC.


 Hey, that’s kind of what I was expecting around 75 to 80 for the design they had shown me. That could be why they’re showing the land for so cheap trying to make it back up on the development of the facility. Yeah I have been playing with design on my first building to maximize square footage for leasable space plus be attractive. Think I’ve settled on 7 to 8 spaces either at 12 or 10,000 square-foot building. Try to keep from having to put fire sprinkler in the building. I did talk to an architect, and he said he could do a preliminary drawing, that would give me enough to go to individual contractors for budget pricing . I thought about being my own GC but that could be problematic if not able to be at site daily.

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Sean York
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  • Houston, TX
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Sean York
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  • Houston, TX
Replied Oct 9 2023, 11:35

I'm in Houston so would like to start in my backyard but need to do market research to understand land prices, expected rents and market saturation.  Any other Houston based small industrial developers that would like to connect?  

I recently came across Hazma Invests who puts out courses and mentorships on flex space development and he's here in Houston (Southside).  I know the development process and have good contacts on the civil engineering, site work and GC side.  Anyone know what the course and/or mentorship costs?  Wondering if its worth it, as I know the development process and have good civil, architect and GC contacts.  
 

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Brent Thomas
  • Contractor
  • Houston TX
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Brent Thomas
  • Contractor
  • Houston TX
Replied Nov 14 2023, 05:01
Quote from @Jamie Boyd:
Quote from @Cole Bigbee:

@Jamie Boyd That sounds a little high for only the shell but unless you have some preliminary drawings to work off of, you're always going to get a high budget. Best thing to do is spend a few bucks and get some drawings done so you can get more "hard" numbers. Cost on a 10K sqft shell(not including land) should be around $75 sqft. This would include about 1,000sqft of basic office and restroom and the warehouse area being semi heated only. No AC.


 Hey, that’s kind of what I was expecting around 75 to 80 for the design they had shown me. That could be why they’re showing the land for so cheap trying to make it back up on the development of the facility. Yeah I have been playing with design on my first building to maximize square footage for leasable space plus be attractive. Think I’ve settled on 7 to 8 spaces either at 12 or 10,000 square-foot building. Try to keep from having to put fire sprinkler in the building. I did talk to an architect, and he said he could do a preliminary drawing, that would give me enough to go to individual contractors for budget pricing . I thought about being my own GC but that could be problematic if not able to be at site daily.


 Jamie,

I am working on pricing out the same type of project for a future development I plan on doing here in the Houston area. I am a commercial GC  by trade and I build these projects for clients. I am finally deciding to do one for myself though. I do think it is wise to get a conceptual design together to get estimates. However, the site work is going to be a challenge to price out since there are many unknowns. I would be happy to explain expectations and challenges we run into on our projects with you just so you can have a plan, at least from the construction side. 

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Brent Thomas
  • Contractor
  • Houston TX
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Brent Thomas
  • Contractor
  • Houston TX
Replied Nov 14 2023, 05:08
Quote from @Sean York:

I'm in Houston so would like to start in my backyard but need to do market research to understand land prices, expected rents and market saturation.  Any other Houston based small industrial developers that would like to connect?  

I recently came across Hazma Invests who puts out courses and mentorships on flex space development and he's here in Houston (Southside).  I know the development process and have good contacts on the civil engineering, site work and GC side.  Anyone know what the course and/or mentorship costs?  Wondering if its worth it, as I know the development process and have good civil, architect and GC contacts.  
 


 Sean, I too have come across Hamza. Have you gotten involved with his team yet? I was planning on having some discussions with them to see if it was worth the time and money. My biggest obstacle is finding the right land for the project and that is really the guidance I will be looking for. I think I have a pretty good idea, but just curious if there was some magic formula in finding the right dirt. 

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Dilip Jeyram
  • Richmond, VA
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Dilip Jeyram
  • Richmond, VA
Replied Nov 27 2023, 06:36
Quote from @Brent Thomas:
Quote from @Sean York:

I'm in Houston so would like to start in my backyard but need to do market research to understand land prices, expected rents and market saturation.  Any other Houston based small industrial developers that would like to connect?  

I recently came across Hazma Invests who puts out courses and mentorships on flex space development and he's here in Houston (Southside).  I know the development process and have good contacts on the civil engineering, site work and GC side.  Anyone know what the course and/or mentorship costs?  Wondering if its worth it, as I know the development process and have good civil, architect and GC contacts.  
 


 Sean, I too have come across Hamza. Have you gotten involved with his team yet? I was planning on having some discussions with them to see if it was worth the time and money. My biggest obstacle is finding the right land for the project and that is really the guidance I will be looking for. I think I have a pretty good idea, but just curious if there was some magic formula in finding the right dirt. 

 @Sean York@Brent Thomas I connected with a team member from Hamza invests. They gave me a walk through. Flex space untapped (fsu)course. Course fee quoted is $12k. In summary they state it is  a full life cycle mentorship model - but not one on one. Always small group. Deal analysis- I was told I could submit a form and hamzas team would provide analysis.  Im trying to find past clients to talk to. Happy to connect. My apologies if I'm hijacking this thread...

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Sonny Dhillon
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  • Manteca, CA
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Sonny Dhillon
  • Investor
  • Manteca, CA
Replied Dec 17 2023, 18:53
Quote from @Jamie Boyd:

What is it costing per sq ft there in Texas currently to to a full build out minus the land? I was just quoted ballpark on a 10k building 1.2 to 1.3 mill just a shell mostly with only 2 bathrooms.


 did that included concrete and driveway , is that out the door everything except land ? 

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Replied Feb 19 2024, 11:02

I have no experience with flex, but wanted to know what drives the demand. How do you go about assessing if it's needed in the market? Any other tid bits or rules of thumb would be helpful. Genuinely curious. 

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Jay Thomas
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Jay Thomas
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Replied Feb 20 2024, 08:29

In the Texas real estate landscape, Flex Space is not a yoga move but a burgeoning niche worth exploring. With businesses of all sizes opting for flexible spaces, Texas presents a prime market due to its thriving economy. The appeal includes lower vacancy risk, higher rents, and a diverse range of offerings, potentially strengthening your portfolio. However, challenges include stiff competition, high development costs, intensive management, and the need for specialized tenant attraction. Whether Flex Space aligns with your strategy depends on your risk tolerance, resources, and investment goals. For seasoned developers equipped to navigate a competitive market, it could be a lucrative niche, but newcomers or those favoring a traditional approach should proceed with caution.