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.

Working on a new project and would love some real-world layout advice. I’m debating two approaches that both get to 44,000 SF leasable area: 1. One deeper building with back-to-back units sharing a central demising wall 2. Two narrower buildings with a shared truck/access court between them One building pros: Lower construction/site costs, less required brick cladding, and only one foundation/utility connection. Two building pros: Better truck access, more leasable frontage, and parking closer to each space. Target demographic is trade contractors, service providers, etc. I’m attaching examples of both layouts from a similar project. Has anyone dealt with this tradeoff before? Which layout worked better from a leasing or construction perspective, and anything you’d do differently? Thanks! Dave

I've heard mixed opinions on this, but have other developers had success building flex on septic systems? My concern is that it would limit users. However, many of the sites with sewer in my market (Raleigh) have too high of a land basis to pencil. Would love to hear any real-world input. Thanks!

Hi everyone! Is anyone else having issues with pre-engineered metal building suppliers lately? We've already switched vendors twice on our 30,000 SF project to avoid major steel price increases. Our current supplier locked in pricing, but engineering has been significantly delayed, and they just pushed our delivery date back another 60 days. Is this becoming common, or did we just get unlucky? If you've had a good experience with a PEMB supplier that serves North Carolina (supply and install), I'd really appreciate any recommendations. At this point, we're seriously considering switching vendors again. Thanks in advance for any advice.

I'd love some real-world advice. We're planning a 45,000 SF flex building on 4 acres in Holly Springs, NC, in an affluent, established business park adjacent to $1M+ homes. We think the best opportunity is serving smaller contractors, but I'm trying to determine the ideal bay size. I've seen projects with bays as small as 1250 SF, but I'm concerned about the added build-out costs, management, and tenant credit. On the other hand, 2,500–5,000 SF bays are much more efficient, but the total rent may price out some of the target tenants. For those who have developed or leased this product, where have you found the sweet spot?