I'm Buying Industrial Outdoor Storage in 2024, Top 10 Markets for Real Estate (Office Hours)
This episode of Office Hours dives into why I’m buying industrial outdoor storage in 2024 (and how you can partner with me), the top 10 markets to buy real estate in 2024, and more.
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Key Takeaways:
Tyler is excited about the potential of industrial outdoor storage/vehicle storage properties as covered land plays that can provide good cash flow. He discusses underwriting assumptions and marketing strategies for these types of properties.
Tyler discusses his brokerage business and some recent listings they have picked up. He also mentions a drone he recently purchased to help with property marketing photos/videos.
Tyler fields various questions from listeners about commercial real estate topics like cap rates, specific markets, leasing to certain business types like wine bars, and more.
Tyler seems optimistic about investment opportunities in 2023 and 2024, expecting some distressed selling opportunities as interest rates impact property owners.
About Your Host:
Tyler Cauble, Founder & President of The Cauble Group, is a commercial real estate broker and investor based in East Nashville. He’s the best selling author of Open for Business: The Insider’s Guide to Leasing Commercial Real Estate and has focused his career on serving commercial real estate investors.
Episode Transcript:
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Welcome back to the commercial real estate investor podcast Office Hours edition going live Tuesdays at 8:30am Central Standard Time to answer your questions about commercial real estate. If you want to get some one on one coaching, you have questions that you just haven't been able to get answered. Feel free to jump in live with me on Tuesdays at 8:30am Central Standard and I'm happy to cover those Dukes prepper counties is good morning coprolites and good morning, Tyler. Good morning Dukes. That's funny. I've actually been thinking I need to come up with a nickname for my audience. I see a lot of people on YouTube with nicknames for their audience and that's one thing that I just haven't gotten around to doing so you guys have any good ideas for nicknames around you know the commercial real estate audience here on the on the YouTube channel and on the podcast. Let me know we'd love to come up with something like that. MS is saying good morning Tyler. How are you doing buddy? doing pretty well. You know it's been it's been a good couple of weeks got to you know spend some good time with family last week over Thanksgiving fortunately I've got family here in Nashville I never really left and went too far from the nest so I had to travel all of 30 minutes down in Brentwood to go enjoy some some turkey and ham with the family. You know we started doing a fried turkey. I don't know if you guys have ever done fried turkey. I know this has nothing to do with commercial real estate but fried turkey is 1000 times better than regular turkey. Not a big turkey fan. But you know when it comes to to fried turkey. So much better. Can you say good morning tower and all good morning Kenny. appreciate you guys joining me. I've got just got this in the mail. Yesterday, I guess the DJI mini to se it's a drone. My the drone that I've been using for the last five years to take all of our photos of sites to do all of our videos. And to you know, I fly roofs and look at buildings while we're out there actually inspecting them completely. I don't know for whatever reason the video stopped streaming to my phone like the drone will take off, it'll fly. I've done the updates. I've done everything I could cannot get the video to stream onto my phone when I'm flying it. So obviously there's I can't see what I'm what I'm doing. So did a bunch of research found the DJI mini two sc really excited to check that out. I'll be doing that this week. So I'll give you guys a little review on it. I'd love to wink in the description below. Of all the research I've done, it seems like by far the best. The best drone that you can really get for real estate, in my opinion, because it's small, it's got 31 minutes of flight time. Which really, really comes in handy when you're out there trying to shoot a building because, you know, you gotta get all the detail shots, you got to get the faraway shots, you got to get videos going all around the property. So that was one problem I always have with my DJI Mavic two Pro was that it only had like 15, maybe 20 minutes of flight time. And I would have to change the batteries probably three times and it only came with three batteries. So really excited to check this one out. It seems to me like it gets the same photos as everything else. You know, 20 700k video, 10 Kilometer HD video transmission. I mean, 10 kilometers, I'm never going to be 10 kilometers away from this drone. But it's awesome to see because that was another problem I had with my DJI Mavic two Pro was that I would fly it, you know, maybe, I don't know, half a mile away, and it would start getting a little choppy. So that was a little, little interesting. But yeah, the the team has picked up a whole bunch of new listings. So on the brokerage side, so I've gotta, I gotta get to work, get out there and start shooting some, some drone footage, highly recommend having a drone in your arsenal. If you don't, whether you're a broker or a real estate investor doesn't matter, it'll always come in handy. I mean, I'll just put it this way we were out on site one time. This was when I was just a broker. And we were in a competitive bidding situation, the property had just hit the market. It was an apartment complex. It was a very you know, it was a smaller deal, probably 20 to 30 units. So there were a lot of people bidding on it. And the big unknown that everybody had since the property had been abandoned for a little while and the owner wasn't really there to give a lot of input. Was that the condition of the roof? Well guess what I was the only one that brought a drone with me to that showing and so I got it up on the roof. My client ended up feeling very confident and making an offer and we got it in and got it one so highly recommend having one of those. It makes a huge difference when you are just trying to get deals done honestly Let's see Dukes with Brevard County is saying do you make videos of you talking to potential clients to hear how you drum up business or close deals maybe in the paid training? Actually don't that's one thing that I haven't gotten around to doing I have considered it before I just, you know, filming myself talking to either investors or you know, potential buying clients on the brokerage side, whatever it is, of course, we'd have to go through and redact a bunch of names and addresses and things like that. And I would certainly be open to adding that to, to the course or something like that. Because it just makes sense to hear those kinds of things. I mean, obviously, my brokers get to hear that, right, because I'm involved with him on all these deals. But yeah, I think it just comes down to making sure that we edit it correctly and do the privacy. Right. But yeah, I mean, I'd certainly be open to it. If that's something that you guys want, that would be helpful. I mean, just let me know in the comments. And if and if enough people make that comment, then I'll get something like that recorded. You guys can hear how I talked to prospects, how I talked to my investors, you know, stuff like that would be would be happy to do it. Because I think I think it'd be interesting. As far as like the paid training goes, when you're when you're, you know, if you're talking about the coaching, yeah, I mean, those my coaching clients here, how I talk to, you know, Winders, property managers, brokers, their investors, whatever they need, because I will hop on those phone calls with them. So it's a little bit different. It's obviously not recorded, but you know, we're doing those live. Can you say and cap rate seems creeping up daily on Craxi unloading started. I don't know that the the unloading has started quite yet. But I do think that cap rates are starting to creep up. I mean, about a year ago, we were able to negotiate a triple net investment for a client out of California, about 50 or 100 basis points, which at the time was a lot of movement, right? Because I mean, we hadn't seen cap rates move all that much for a long time, definitely not up. But it was when interest rates started rising, it was a developer client that really just wanted to sell the building and move on to their next project. And so we were able to negotiate that that was a year ago, interest rates have gone up even more since then. And I know the guys on the on the, you know, singleton and atleast, triple net lease side and my team, they're able to get much better deals today. So yes, I think that cap rates are starting to move up, I don't know that a big unload is happening quite yet. I was having a conversation with Eric Diems. He's with land advisors, here in Nashville, awesome, firm. They specialize only in land sales. That's all they do. And so I was meeting with him talking to him about some industrial outdoor storage, that's one thing that we're interested in buying a lot of in 24. And I'll talk about that here in a minute. But, you know, Nashville, it's probably just Nashville, right? Nashville doesn't have a lot of blood in the water. There's not a whole lot of desperation going on here. You know, there's, there's certainly like the waters still, right. It's not very choppy, there's not a whole lot going on. But there's no blood in the water, you know, maybe a bloody nose here or there. But but nothing crazy. So I'm expecting some time in the next six to 12 months for there to be an unloading. I think that there's just going to be some sellers that are in a more desperate situation that don't really have any options. And they can't refinance, because their debt service coverage ratio doesn't work in new interest rates, or they just want to get out of the business altogether. So keep an eye out. I think 24 is going to have an amazing amount of opportunities. And there's gonna be some deals to be had. Due to saying that would be amazing. Yeah, let me let me think on it, I might, I might put that together, I think it'd be helpful for for everybody to have because it's, you know, he's talking about, you know, my having those phone calls with potential clients or whatever. I think, especially, you know, we'll try and figure out how I can record those calls, I do have some
that I have recorded, because I've got an AI that jumps into all of my calls. Now. That records everything. It's called Read AI, R ea d.ai. Highly recommend that program. I use it for all of my coaching clients as well, because it comes in it records the entire conversation. And now it can only jump into Google need, and zoom in and maybe some other things, but it doesn't just like automatically, you know, whenever you turn your phone on and call somebody, start recording, but it's it's pretty nice, provides notes provides key questions, it provides a transcript of the whole conversation. So it really comes in handy whenever you're putting these things together so that I can provide that training to, you know, my broker's my team, okay, here's how I had a conversation with this person about this. And, you know, that means that they don't have to be live with me on every single phone call to learn anything, and then also have a record of all the phone calls that I've had. Which, you know what I mean? Real estate is very litigious. You never know when something's going to happen. I wish I'd had A couple of years ago, I've been in a lawsuit with one of my tenants for about a year and a half now. And it's the most frustrating thing in the world, they just decided to stop paying me rent. And because they didn't want to build out their space, and now they're suing me. I mean, it's the most ridiculous thing in the world. But that's America, anybody can sue anybody over everything. So yeah, here we are. Anyway, earlier I mentioned industrial outdoor storage. That is, that is a, you know, asset class that I'm very interested in buying and 24 I'm really looking for lower cost basis, cashflow plays, that are good covered land plays, and I think an industrial outdoor storage deal is very interesting, you can buy two to 10 plus acres, all you have to do is it really is to gravel it, fence it in, make sure that you've got some sort of way to denote which spaces are leased to which tenant, and then you just go out, well, of course, you're gonna have to put lighting and security and stuff like that, but you're not having to build entire buildings, right. So it's very minimally intensive. And, you know, you could rent these spaces out for 100 to $200 a month. Now, one thing that you do have to deal with, and this makes it very management intensive, is month to month, typically, month to month or six month leases, which isn't the worst thing in the world, but you start thinking about it, I mean, you get 50, you probably fit about 30 to 40 trucks on an acre, depending on how its laid out. I mean, you're talking pretty fair amount of money every month, right? If you're, if you're just charging $100 a month and 30 trucks is three grand, right, so that's 36,000 a year, your expenses are going to be minimal, because you're gonna have property taxes, insurance, your insurance is probably gonna be lower, because there's no building to replace, it's really just almost liability. And then you're gonna have some utilities, but it's really in. So we're going to be buying some of that, and 24. If you're interested in investing with us and partnering with me on some of those deals, feel free to reach out, go to Tyler cauble.com/invest. To get on that list, hop on a phone call with me. And we can talk about what it looks like to invest in our deals. I'm really looking forward to some of those, I was looking at a 16 acre deal yesterday that I think I could get for about $100,000 an acre, which is tough to beat, you know, you start running the numbers on that I think industrial outdoor storage really works up to around three or $400,000 an acre depending on what kind of return you want to get and what your debt structure looks like. So you know, those deals look good, you just really have to go for a piece of land that's relatively flat, it's already zoned, that'd be ideal, right? You don't really want to go through a rezoning for something that's as small as this. But if the numbers just make sense, of course, you could do that. You want to be closer to interstate access, and you want the ability, ease of access for trucks, right? Because there's gonna be a lot of 18 wheelers gonna be a lot of box trucks, you're probably have some dumpsters and some other things like that, that you're gonna want to deal with. So there you have it for industrial outdoor storage. I've done a video on that here recently, and I highly recommend you go check it out. Ron Rody did a story of the deal with us on it, which was great. It was a great story of the deal. And I also had him on to the podcast and interviewed him about investing in industrial outdoor storage. So we've got a lot of content on that asset class. It's something that started kind of coming up on my radar. About a year ago, we had groups out of the Northeast calling us wanting just storage lots. And I was like, why would you want to do that? That sounds like a pain. But then I started really looking into the numbers and realizing what was going on. I was like, oh, yeah, now these guys got it. Right. It's a great cover lay in play. So there you have it. Let's see. Let me know what other questions you guys have happy to cover any any topics you'll want right now. It's a it's a pretty interesting time and commercial real estate. Just released a video on Sunday, counting down the top 10 markets in the United States for 2024. And also what you should buy in each of those markets like what is doing well what is doing hot couple of things that I noticed, industrial, obviously. And in most of the top 10 markets industrials doing pretty well. Healthcare, of course, it's doing pretty well. Life Sciences. That was one that kept coming up. I thought that was pretty interesting. There were some markets where there were zero 0% vacancy rates in life sciences, which is pretty hard to believe. It's a very specialty type of commercial real estate, it's very difficult to build. It's very expensive to build. And as far as tenants go, there are very few tenants that are going to take that so they're probably all if not the majority are going to be build the suits. But something to keep in mind as you're going through, looking at that kind of stuff. I think, you know, there were some surprises on the list. I had some comments about San Diego being in the top 10 You know, why is Sandy Diego not the next San Francisco. I think that's a great question. You know, it's San Diego is a very interesting market. I think that the weather there is some of the best in the country. And I think that that contributes a lot. I mean, there are I have conversations with people that live in San Diego all the time, that I'm like, why would you live in California? The taxes that you pay are crazy, why not go somewhere else? Like, yeah, that's, I get that. But also, the lifestyle that I live in San Diego is better than anywhere else, I could have in the United States, it's sunny 90% plus of the year, so I get it, you know, it's tough to be That's 70 degrees, sunny weather. But also San Diego has a pretty good, you know, variety of of businesses there. And you're also close to the border. So don't discount that with San Diego. I mean, Mexico is a pretty big trade partner for the United States. So you know, distribution, manufacturing, storage, all that kind of stuff is pretty hot in San Diego. So I think that's pretty much what is contributing to to San Diego being on the list. Some of the other ones of course, you had Nashville, Dwayne saying it was great seeing Raleigh, North Carolina on the west. Raleigh has just been crushing it for several years now. Dallas Fort Worth, which it's just wild to see how much Dallas Fort Worth has grown. The amount of industrial space, I want to say it's well over a billion square feet of industrial space in Dallas, Fort Worth is insane. To me, that is a wild amount of industrial rich with cars and saying Hey, Tyler, when you underwrite these outdoor industrial stores deals, what do you typically assume as vacancy? And at what number do you max out vacancy? I'm not sure what you mean, what number do I max out vacancy? Maybe you could drop into the comments and clarify that a little bit. But as far as you know, underwriting these deals, it depends on the market. You know, when I talked with Ron, I mean, he basically underwrote like a 97% occupancy rate, but they were 100% occupied at his site. So there's not very many of them out there. They're high in demand. But it's also one of those one of those markets where it's tough to really assess the demand. So I, when I was underwriting my deal, yesterday, I underwrote it at an 80% occupancy rate, which I think is low. But I want to be conservative going into this, I don't want to assume that we're going to hit what Ron hit with 100% occupancy, I just don't know. You know, and of course, it all comes down to a factor of pricing, right? I mean, you know, we might get, you know, 90% occupancy at 175 bucks a month, but we might get 100%, occupancy at 150, or 125. So it all just comes down to kind of what you're looking at. And, you know, these are deals that right now I'd probably just, you know, raise cash for, right? Just go out to my investor say, hey, I need $2 million. Let's go pay cash for this. Let's sit on it for a little while. Let's just cash flow, because I think that we could get 1012 14% cash on cash returns, if we did it right. And we wouldn't have to have any debt wouldn't have to worry about dealing with banks right now. We can always refinance it later, once it's up stabilized and cash flowing. And then we'll actually get paid for the amount of work that we're putting into it.
Richard's saying what number is vacancy? When you hit stabilization? I would say probably 5%, probably 5%. Once you hit stabilization, but you know, I don't know it really depends on on the deal. So I'd have to really dig into that. Dukes Dukes is saying I'm very excited to see the Seattle May the West. Yeah, that was another one that I got some comments on. Like, why is Seattle in the top 10? Well, Seattle is very interesting. I know that it's very expensive. It's obviously in the Pacific Northwest. But their tech sector hasn't gotten hit as hard as San Francisco's, which is really interesting to think about when it comes to the office asset class. You know, Seattle, was struggling there for a little bit with work from home. But it doesn't seem like that's as big of an issue now as it is compared to like, relative to other cities, San Francisco. Oh my gosh, I think everybody there is working from home. But it's not the case in Seattle, and you've got some really big headquarters there that are having people come into the office. So you know, Seattle and Seattle is growing. It's growing a lot. And you also have to think when Canada told you know, foreign investors that could no longer buy real estate in the country. Seattle was the next best thing right there just south of the border. Right because Vancouver had an issue where a lot of Chinese billionaires were buying a lot of real estate in the Vancouver BC area and it was causing issues with their housing costs, real estate, etc. And so they just put a freeze on it. Which is pretty interesting. Giorgio saying looking to lease commercial space for a wine bar, what are some thought processes and beforehand research to make sure I choose the right space. Good question. I actually leased a space to a wine bar. Gosh, I guess it was a couple of years ago now. So very familiar with going through that process. As far as You know, wine bars go, I think one, you got to figure out what kind of wine bar you're going to be, are you going to be a very high end wine bar? Or are you going to be more of the neighborhood approachable wine bar, the one that we leased to had a great thesis, which was, we want to be the wine bar, that all of the moms that are walking in the area, stopping with their friends to, you know, have a little happy hour, right, because they're in the area that we leased to them, there were a lot of moms that would walk, you know, their kids push strollers around, you know, three, four o'clock in the day. So they went for cheaper wine, and you know, okay, appetizers, I think that if they had gone with more of a, like a like the thesis around the five to $10, glass wine, but I think you got to have high end appetizers, or high end tapas to go with that, to make it really work well. And to keep people there and to, you know, really drive up those tabs, right? Because you're, you're gonna make your margins on that second and third glass of wine. So I think that, if that's the route, you're gonna go then do that. I think if you're going for more of a high end thing, just make sure you're in high end area. So look into the demographics. Figure out what the disposable income is of the residence in that area, look at 135 mile radius, figure out how many households are there, do some research on some other wine bars that are in the area to see what they're serving what you think you could improve upon. I mean, I would just go sit in those wine bars and experience it and see what it is like having wine there and see what you could improve upon. Let's see Georgia saying it's a self serving wine bar. That's interesting. I haven't seen that before. I've seen some self serving, like beer bars, I guess. I mean, there's there's one here in Nashville where you just kind of swipe your card, I guess they ID you at the front, I don't really know how that works. swipe your ID, or swipe your card, and it just dispenses the right amount of beer for you. It's actually pretty nice and convenient. Let's see, George is asking Will with the wine bar, will it require a grease trap for snacks? It depends on your local area, probably almost every food concept in Nashville requires a grease trap, even if you don't even really have snacks. Because they want you know you're going to have if you've got mixed drinks, you're going to have some milk in some of those. And, you know, if you have snacks, there's going to be some sort of grease that goes with it at a minimum, you're probably going to have to have an undercounter grease trap. But, you know, I would assume I wouldn't assume I would call your local zoning codes and figure out exactly what you're going to need. Let's see, Dukes is saying generally 90 to 95% is what winners look for a debt service coverage ratio is a big factor talking about industrial outdoor storage. Yeah, I would agree that's that's typically what you want to aim for. Whenever you're doing your underwriting. Michael, how and where would you advertise these iOS spaces available? That's a good question. One, I would put a giant sign out front to I would probably send out a flyer to every business within a you know, 510 mile radius that has a fleet of vehicles? How would you find that? Well, I probably just, you know, go through and sort it based on the type of business that they are. And think through, you know, who's going to have a fleet of vehicles, you got contractors, you've got delivery companies, you've got, you know, I mean, even overflow parking for for car dealerships is a big thing, right? So you got to think through all of those things. I would, I would post it on Craigslist, LoopNet Facebook marketplace, you'd be amazed at the amount of clients that you can get through marketplaces like that, especially for an asset class like this. I mean, a lot of a lot of investors and I guess brokers to really underestimate the power of Craigslist and Facebook marketplace. A lot of those clients that you're you want to have leasing your space are on those platforms. So go and use them. I mean, back when I first got started as broker I was, I was posting on Craigslist every day, you know, just updating our listings, making them look nicer, changing the title, seeing what worked, and we got a lot of really good tenants off of Craigslist. You know, of course, that was 10 years ago. So who knows how effective that would be today, I would imagine it's still probably pretty effective. You know, all you have to do is copy and paste whenever your listing is. But get a Google Business Listing, right, you know, when you search a business on Google, and they've got that little page on the side that says call directions, whatever. Get one of those. I mean, there's a lot of commercial buildings, commercial properties in general that don't do that and it blows my mind. Because it's a very easy way for you to direct traffic there. Right so just do you know Davidson County Industrial outdoor storage or Davidson County vehicle storage, something like that. Because if somebody goes and searches, you know, vehicle storage Davidson County or vehicle storage Nashville, you're going to be the first thing that pops up and you're gonna have a Google My Business listing. So be a great way for you to go find some tenants there. So yeah, I mean, there's a lot of potential with industrial outdoor storage, I like it, you could always build flex space there in the future or do something to that extent, you know, which is always always nice. I just like it as a covered land plan. I'm a big cover, land play guy, anything that you can buy, that covers itself that in five or 10 years from now is going to have significantly more potential than what it's being used for. I'm all for it, even if it's breakeven today, because or, you know, hopefully, you're doing a little more than breakeven, but even if it's breaking even in five or 10 years, you know, maybe you can get it rezone, maybe you can build a much bigger building on it, maybe there's, you know, story to be told to another developer to where you can get a higher price out of it. I think it's just makes all the sense in the world. Numerous thing is it good for a real estate investor to have compounding interest? And can you explain what compounding interest is on the investor and I'm trying to so nor can you give me a little more context on on what the compounding interest is coming from? Is the investor paying their winter compounding interest? Is this an LP investor that is getting compounding interest from their, you know, from a syndication that they've invested in? Because it all depends, I mean, compounding interest is just interest that compounds daily, right. So, you know, every day that goes by, the interest is calculated on the previous day, or that day's balance, instead of, you know, like, annual percentage, which is just, you know, hey, here's, you're getting four and a half percent of your money every year compounding interest adds up a lot faster, because it's, it's compounding, right? It's not simple interest, where, you know, the new balance is calculated daily. So I'm trying to understand what what context that might be and it's not very common for a an investor in a syndication to have count compounding interest on on their investment. You could sometimes see that at a bank, it's pretty rare. But I haven't seen it in quite some time, I would stay away from it. If I was having to pay it, I would stay away from compounding interest, because there's way too many banks that are willing to take, you know, simple interest without having to deal with that, and it just adds up quickly.
But, you know, thanks for finicky right now, you never know what you're gonna get whenever you go to a bank. So who knows what they're charging. That's why when I'm looking at industrial outdoor storage, I want to do you know, I want to pay all cash, like, let's just pay cash, I'll give my investors a 9% preferred return. And, you know, we can pay cash and not deal with the bank. I'd rather pay my investors that money that a bank anyway. But it all it all just comes down to the deal. If we could raise cash for every single deal, and it would make financial sense, I would do that 100% makes your life so much easier. gives you so much more flexibility in the long run as to what you want to do with with the property. I did have a question that came in offline. Let's see it was I just had a question about leasing a small commercial space I intend to use for a private tattoo parlor. I only need a space that's around 300 to 500 square feet. And I'm wondering, is there a possibility of using an office setting? Yes, so I have actually leased in my office building I've got two tattoo shops. I'm very picky about the type of tattoo shops that I will put into an office building they have to be high end I have to inspect their brand before and they have to be appointment only no signage on the building. It's got to be very high you know just like a treat it like a med spa. Right like you're you have a high end clientele if your appointment only. And we're not doing walk ins we're not doing any of that kind of stuff. So works out really well. I've enjoyed it. They're great tenants. I mean, you gotta worry about people smoking pot outside, which is wild. Like why would you smoke weed? Not that I haven't had any problems against ever. Why would you smoke weed before you go give a tattoo that seems so crazy to me. Tim is saying what are your thoughts on investing in marinas? 5100 dock slips based in Jackson, Florida. I like marinas, there's very few of them out there. It's an interesting play. It's a very unique market. But I did almost buy a marina in Knoxville a few years back. I do I do like that as an asset class. You just got to do your research. Nora's saying thank you. I was talking about an investor paying and sundry stay away. Do not pay compounding interest your lender. Let's see Rich is saying would you purchase an existing iOS? That's industrial outdoor storage that's already operating? I would I mean, if I can get a good enough cap rate on it and there's a story to be told then then absolutely. I would do it. There's nothing wrong with that. Right. It makes it a lot easier on me for sure. All right, here's our last question. Dwayne is saying wouldn't there be a noise issue, how do you control any noise concerns that can come up? Trying to think of what question that would be. Maybe, maybe he's talking about industrial outdoor storage, there shouldn't be any noises, right, you've just got vehicles coming and going. So there shouldn't be anything too crazy on industrial outdoor storage. But that, or maybe, maybe he's talking about a tattoo shop, there could be issues with noise in a tattoo shop, you just got to make sure they're not playing music too loud. But you can't hear those tattoo machines outside of the room that they're being used at. I mean, trust me, I've got a whole bunch of tattoos and, and it's really not all that loud. So I would just make sure that you you control that in the lease. You know, of course, we have lease clauses stay, you know, you can't have you know, any disturbance of the space. So, if if a tenant nearby is complaining about how much noise is coming from a tattoo shop or what the smells are or whatever, then we can go in there and address that and deal with it. But that is it for today's Office Hours. Join me next week, Tuesday at 8:30am Central Standard Time, we'll dive more into your questions. Appreciate you all joining me and we'll see you next time.
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