One thing this acquisition reinforced for me… I think we’ve (as a company) been asking the wrong underwriting question. Most people ask: “How long will lease-up take after closing?” I think the better question is: “How much recurring monthly revenue can we have committed before we unlock the gate?” For me, due diligence doesn’t begin when the PSA is signed. By the time we put a property under contract, we’ve already spent weeks—or sometimes months—studying it. We know the market. We understand the infrastructure. We’ve looked at zoning, utilities, operations, competition, and replacement cost. The contractual due diligence period is there to verify what we’ve already learned. But once we’re under contract, something changes. We now have control of the process. That’s when execution begins. Now we can walk into the supply houses, introduce ourselves, talk to prospective customers, build referral relationships, schedule move-ins, and begin assembling the business that will operate on Day One. The goal isn’t to spend 60 days wondering whether to buy the property. The goal is to spend 60 days proving we’re ready to operate it. Closing shouldn’t be the beginning of leasing. Closing should be the day you unlock the gate for customers who already know you’re coming.

One of the biggest lessons in commercial real estate is that the best opportunities rarely look like the best opportunities. The property we just put under contract wasn’t the newest. It wasn’t the prettiest. And it certainly wasn’t the one everyone else was chasing. It was an existing operating business in North Carolina with infrastructure already in place, existing customers, and a seller whose objectives extended beyond simply getting the highest price. The lesson? Great deals aren’t found by looking at listing prices. They’re found by understanding what has already been built, what it would cost to recreate it today, and—most importantly—what the seller is actually trying to accomplish. We didn’t structure this transaction around price. We structured it around solving a problem. When both parties leave the table feeling like they won, that’s usually the beginning of a great investment. There’s a lot of overlooked value hiding in plain sight if you’re willing to ask better questions.

I’m pretty settled on what outdoor space to offer to the flex tenants I’m starting with a building at the edge of the property where there will be access to their yard and back of their unit from the road. The next building facing that one would have none. I made some progress designing the section of stand alone storage yards. I have a section that will be 80 ft deep from road to tree line and a good 550’ long so I came up with 65’ deep yards. I explored the Longyards model and thinking about using the same type of covered temporary fence panels and offering up fenced to suit in 25’ wide increments. Longyards is offering just the fenced yards starting at .18 sf up to .46 so they have a range. I have designed a 500’ long x 30’ deep carport so the back of the yard is partially covered. Another available option will be shipping containers. I’m wondering if the 30’ carport deep is too shallow. I’m not trying to compete with RV storage or I’d make it 45’ but 30’ ought to be good for more sensitive equipment that you want out of the sun. I don’t think I could have made so much progress without AI to help me stay organized. The real question on this of course is what will they be willing to pay. This is kind of a hybrid so comps aren’t just at a keystroke. Most of the covered storage I see is boat and rv and most of the contractor yards are just fenced pens or acreage. I welcome any comments or feedback.

Hey everyone, for those of you who have made offers on flex and small bay deals, can you share any tips on presenting them effectively? I've seen and used LOIs ranging from one page to multiple pages, and from non-binding to binding. I'll be presenting through the seller's broker and I'm not sure what gets the seller's attention versus what shuts the conversation down before it starts. Any guidance on format, terms, or approach would be appreciated.

What type of tenants would you consider the most recession proof and why?