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8 contributions to Small Bay Industrial Basecamp
Water Detention
Has anyone used or encountered underground detention with flex? Curios to hear your experiences if so. Thanks!
2 likes • 16d
@Cary Williams Sorry I missed this. Typically, we can pay up to $30 per building foot and make something pencil, assuming rents in the upper teens SF NNN. Is that what you're asking? For example, we could pay $900K for land that would support 30,000 SF. Generally works out to about $250-$300K/acre in the Raleigh market.
0 likes • 14d
really has nothing to do with the rentable area because you could have a 10,000 SF building with 4 acres of parking
CMU For Flex
Has anyone built a flex industrial building using load-bearing CMU walls instead of PEMB? I'm considering this for our next project. Most jurisdictions in my market require around 50% masonry on visible walls anyway, so it seems redundant to pay for the PEMB structure and then add masonry to the outside. PEMB lead times have gotten scary, and costs keep going up with tariffs and inflation. With CMU, you could also paint the interior walls and leave them exposed, eliminating the interior framing. My sense is the overall cost would be pretty similar, but you'd end up with a more solid building. I'm attaching a few photos of a building here in Raleigh that used this approach, although they added brick veneer over the CMU, which I'd like to avoid. Anyone have firsthand experience with this? Curious how the costs and construction timelines compared. Thanks!
CMU For Flex
1 like • 15d
@Matthew MacPherson I'm pretty sure you can do 100% CMU. Here's another example in Raleigh, although this one is retail.
2 likes • 15d
@Yog Melwani Thanks, tilt wall is great but very expensive in our market. Really only pencils for 50,000SF or more.
Bonus Depreciation as a Strategy to Boost IRR
Anyone selling bonus depreciation to investors as part of their strategy? Here is an example of a small deal that I closed in April. Deal: 14,000 PEMB Purchase Price: $910,000 Equity Invested: $240,000 1st year depreciation: $175,807 -> see attached schedule from a Cost Seg Study That is a $161,350 difference in year one over the standard depreciation schedule. I know not everyone can benefit from the bonus depreciation, but it meaningfully impacts the IRR for me if I include the value of the tax deduction. Love to get your thoughts and insights.
Bonus Depreciation as a Strategy to Boost IRR
0 likes • Sep 29
We've done this before. Equity investor gets the bonus depreciation until some milestone happens, like the building is re-leased. Then you purchase back shares to get back to a normal split moving forward. We've tried to count this as part of their profit share, but I've never succeeded in winning that argument.
One Larger Building or Two Narrower Ones?
Working on a new project and would love some real-world layout advice. I’m debating two approaches that both get to 44,000 SF leasable area: 1. One deeper building with back-to-back units sharing a central demising wall 2. Two narrower buildings with a shared truck/access court between them One building pros: Lower construction/site costs, less required brick cladding, and only one foundation/utility connection. Two building pros: Better truck access, more leasable frontage, and parking closer to each space. Target demographic is trade contractors, service providers, etc. I’m attaching examples of both layouts from a similar project. Has anyone dealt with this tradeoff before? Which layout worked better from a leasing or construction perspective, and anything you’d do differently? Thanks! Dave
One Larger Building or Two Narrower Ones?
1 like • Sep 1
@Yog Melwani Thanks, good questions. I'm trying to figure out about the rent differential. Probably need to spend some time calling brokers in this submarket to get an idea.
1 like • Sep 3
@Thaddeus Campbell Thanks Thaddeus. Why 36'? Typically a parking spot is 20' deep here and a drive isle is 20'. Just curious where the 36' number comes from.
Septic with Flex?
I've heard mixed opinions on this, but have other developers had success building flex on septic systems? My concern is that it would limit users. However, many of the sites with sewer in my market (Raleigh) have too high of a land basis to pencil. Would love to hear any real-world input. Thanks!
2 likes • Jul 23
@Andrew White Thanks, your logic makes sense. Where I've heard septic is an issue is when you have manufacturing users, or users that have heavy cleaning needs (like auto repair). But for basic garages, I can't see why it would be too problematic.
1 like • Jul 26
@Tung-To Lam Agreed, good points. If you have a single-tenant you could make them responsible for the septic maintenance. But with several smaller tenants, I agree it would likely be a landlord responsibility.
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David Gorman
3
26 points to level up
@david-gorman-5600
Principal, Lock7 Development

Active 14d ago
Joined May 15, 2026
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