Looking for some advice from the group. Happy to discuss here or coordinate a call with someone who has experience in this space. We currently own shallow-bay and mid-bay industrial assets within our portfolio, but we are evaluating two portfolios of micro-bay properties. Each portfolio has approximately 50+ tenants, with average unit sizes of 1,000 SF and typical lease terms of two years. I'm trying to get a better understanding of the following: 1. Leasing and Renewals: How do you handle leasing and renewals with this many tenants? We typically use outside brokers who work alongside our in-house leasing team. However, given the volume of leases and renewals, I don't see our current team being able to handle this without adding staff. Is there a more efficient approach? 2. Lease Terms: The assets we're evaluating typically have two-year leases. Is it realistic to push tenants toward 3–5 year terms, or is the shorter lease structure simply part of this asset class? 3. Exit Strategy: Who is the typical buyer of micro-bay assets? My assumption is that institutional investors may be less interested given the number of tenants and the management intensity. Is that a fair assumption? 4. Other Considerations: Are there any other operational challenges, underwriting considerations, or lessons learned that we should be thinking about before entering this segment? Appreciate any insight from those who have experience owning and operating micro-bay properties. Thank you.

Hi guys! Will anyone be at “The Show” self-storage conference in Atlanta this week? If so, I’d love to get a happy hour together! Feel free to comment/message me if you’re going! You can find me on LinkedIn at: https://www.linkedin.com/in/dannypoulos?utm_source=share_via&utm_content=profile&utm_medium=member_ios

On the phone with a client yesterday who is concerned about creating the most value possible constructing their park. A couple of amenities came up and I am interested to hear if others have had experience increasing (or decreasing) their returns by having these items. Fire Suppression As it's well known, fire suppression is not always required by county fire marshal's and those building outside the city take advantage of this cost saving opportunity. But, have you encountered difficulty selling a park to another investor or institution by not having fire suppression? Structural Integrity It should be a given that a building is engineered prior to erecting, but some methods achieve "engineer's approval" but without the same tier of material usage as others. Wood framing has been discussed, and cable bracing in metal buildings is common. Has either of those methods hurt your sale to an institutional buyer in the past? For example, we were discussing portal framing vs cable bracing to achieve the same result. Cable bracing is vastly cheaper, but reduces the flexibility for changes in that bay later. Portal framing, on the other hand, is much more flexible in what can be done in the wall later because it follows the columns and rafter rather than creating a giant X in the bay. Spray foam, wood vs steel stud framing, landscaping, etc are all areas where a faster/less expensive options appears better, but could bite you later. I'm not passing a personal judgment on these matters, just curious really as to what OGs have seen around here. Are there other areas that have saved you money, but harmed a larger sale later? This information is very helpful for me to share with clients when value engineering and designing the space.

These have been a topic of discussion on a recent project for us. They are kind of boring, but kind of expensive, and you might be required to put them in your park. F.D.C. stands for Fire Department Connection and is a supplemental system to your base fire suppression system in the building. The fire department can force additional water into the building in the event of a fire when the base system needs additional support. The catch is that while an FDC at the building is often accounted for in your base suppression system, a remote FDC is often required. Not really sure why, except it may be due to safety and proximity to a burning building. If you know, mention it below. How much do they run? Typically around $350/ft. *Gut punch* The location is approved by the fire marshal after he reviews the civil plans, and he may not have the same financial incentive you do to reduce the distance of that line... Just be sure to ask when drawing up the plans so it doesn't get missed during your preliminary budget phase!

Tyler Jones, owner of Legacy Development Partners USA, joins us for a practical walk through a steel build, from planning to erection. Key cost drivers. Realistic timelines. How to coordinate your contractors. And the mistakes to avoid. If you’re planning a build, bring your questions. Friday, Oct 30 -> Weld-up | Steel Building Construction