I’ve been checking out some of the newer small-bay flex developments around northern MA and southern NH. Some impressive properties coming online, and it’s interesting to see the different approaches to pricing and leasing. My experience leasing this type of space is still limited, but it’s got me thinking about what smaller businesses really value when choosing a location. Is it the rate, total monthly cost, lease flexibility, or something else? For those with more experience in small-bay flex, what are you finding matters most to tenants? Anything that’s surprised you?

I am in the process of refinancing a 5 unit building and was caught off guard when I saw that the appraiser used a 9% Cap Rate. Be careful with your underwriting in this market. I would hate to see your deals go upside down. The appraisers and lenders see this shift first. Talk to them often.

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.

I’ve seen this question floating around in a few different threads. If you stacked up Buildium, Door Loop, Yardi Breeze, Other PMS Brand TBD in a poll, who would come out of top and why… specifically for small bay industrial?

Hey All, I'm a small bay industrial flex investor and syndicator. Over the last two years, my team and I have closed on 7 assets in markets all across the country. My favorite parts of this asset class are the support it provides to small businesses and getting people connected with these great investments. Looking forward to get to know this community!