You've been asking for it, so here it is. The last Monday of every month we're setting aside an hour just to connect, no presentation, no slides, just networking. You'll be placed in breakout rooms of 3-4 people, and we'll rotate rooms every 15 minutes so you get real conversations with a handful of different members throughout the hour. One ask: if you're joining, commit to the full hour. Rooms only work if everyone sticks around, jumping in and out mid-rotation leaves people short a conversation partner. First one is August 31st. Come ready to talk shop, trade war stories, and actually meet the people you've been seeing in the chat every week. If you are going to Flex Connect next month, it would be great to join the first call to meet some of the people also going to the conference. I look forward to seeing everyone there. wS

To build or not to build, that is the question! I’m not here to tell you one way or another is better for your investment or development plan. Installing mezzanines during the construction phase or passing along the responsibilities to the tenant/owner both serve in their own ways. In my experience, pre-constructed mezzanines have given developers an opportunity to increase their ROI by investing early in their property, buying the mezzanine materials and services in bulk, then selling their units at MSRP or greater. I have also installed mezzanines in 25-50% of a property to create talking points during a property tour and giving the prospective tenant/owners options and creating a story for their mind to dream about seeing themselves in that space. For me, as I managed multiple CapEx programs and cash flow in my former life, the answer here is: it depends. The discount depends on the scale, and the product type (structural steel, decking, labor, etc), but how that measures and fits within your risk portfolio as a developer is up to you and your investors.

Anyone else planning to be there? I'll be at Flex Connect this year. Two days, fully focused on flex and small bay: construction costs, financing and capital stacks, deal structure, live underwriting, the real operator stuff, not general CRE fluff. I negotiated a discount rate for Basecamp members, link below contains the discount code. Also floating an idea: if there's enough interest, I may put together a casual networking event, happy hour, dinner, the evening before (Sept 29th) for anyone in town early. Drop a comment if that's something you'd want, that'll help me gauge numbers. I am not affiliated with the conference, but I attended it a couple years ago and found it very informative. https://flexspaceconnect.com/home?am_id=willskillman8975

I have reviewed quite a few drawings for major small bay developments - 50+ bays. About half get it right, and the other half is bird shot (large spray of data points for those of familiar with the term). Mezzanines may only cover 1/3 of the open floor area - not 1/2 or 2/3 or 100%. Although there are exceptions to every rule, 99% of the time small bays fall under IBC 505.2.1. So, for a 1,000SF SB unit, the max sized mezzanine that can be installed is 333SF.

I had an impromptu phone call yesterday discussing slab thickness requirements for mezzanines inside their Small Bays. The answer: it’s complex. Officially speaking, we need to run engineering calculations which include a plethora of inputs - foundation type (gravel, sand, void, etc), mezzanine layout and square footage, capacity (normally 100-125PSF for small bay, but can sometimes be required to be 150PSF due to building classification), and number of columns to name a few. Generally speaking, you MIGHT be able to squeak by with 4” slabs, but it’s risky. I prefer 5” minimum (gravel or equivalent substrate). If on a void, it could require thicker 6-8”+, or footers down the line. Then of course, what’s the cost? Is it more cost effective to pour 5” everywhere, 4” on half and 5” the other, or 4” everywhere and install footers as necessary? That’s when a good GC is nice to have. Don’t skimp in the beginning, or risk the biscuit later. I hope this helps generate better conversation around the topic during your development process.