If you’re an aspiring commercial real estate investor looking for your first deal, flex industrial might just be your most strategic entry point. Why? It’s simpler to build, easier to lease, and remarkably scalable—making it the ideal product type for investors transitioning out of residential or small business ownership.
But the key to succeeding with flex space is learning to analyze it the way a developer does—not just as a buyer chasing cash flow, but as someone who’s building long-term value from the ground up.
In this post, I’ll break down how to underwrite a flex deal like a developer, including:
What kinds of rents you can expect (and how to find them)
Realistic construction costs and budget planning
How to structure financing and think through your capital stack
How to gauge tenant demand and avoid sitting on vacant space
By the end, you’ll have a clear lens for evaluating flex space opportunities—and the confidence to pull the trigger on a profitable deal.