Riding Out a Recession in Commercial Real Estate | Office Hours
In this episode of the Commercial Real Estate Investor Podcast, I’m sharing some hard-earned insights on navigating commercial real estate in uncertain times. Whether we’re heading into a full-blown recession or just riding out economic headwinds, one thing’s clear: success in CRE isn’t about predicting the market—it’s about how you position yourself when things get tough.
This past week’s been a whirlwind—jumping straight out of meetings, dealing with a contractor dispute that ballooned to a $100,000 overage on a $166,000 job, and preparing for our upcoming CRE Accelerator Mastermind event right here in Nashville. We’re talking full-scale underwriting workshops, deal pitches over cocktails, and a deep dive into live property analysis with the mastermind community.
But that’s just the beginning. In today’s conversation, we’ll explore the macro forces shaping CRE in 2025—tariffs, restrictive policy, immigration shifts—and break down what they really mean for office, retail, flex, and multifamily. Spoiler alert: nobody knows what’s coming. But the key is staying sharp, asking the right questions, and, above all—just keep cold calling.
Whether you're a first-time investor or a seasoned operator, this episode cuts through the noise with real stories, actionable lessons, and the straight talk you need to stay focused when everyone else is panicking.
Let’s get into it.
Get commercial real estate coaching, courses, and community to jumpstart your investment journey over at CRE Central: www.crecentral.com
Key Takeaways:
Economic Uncertainty: There are potential signs of a recession, with five major economic forces potentially suppressing US economic growth through 2025-2026.
Commercial Real Estate Outlook: The market is unpredictable, with potential both positive and negative impacts across different asset classes (retail, office, multifamily, industrial).
Investment Strategy Advice:
Don't make decisions based on fear
Look at investments with a long-term perspective (5+ year horizon)
Keep cold calling and networking
Focus on buying good assets
Business Approach: Treat commercial real estate as a professional business, not a hobby. Use professional services like property managers and brokers.
Current Challenges:
High construction costs
High interest rates
Potential economic slowdown
Reduced immigration
Growing US federal deficit
Practical Tip: For flex space, consider renovating existing properties rather than building from ground up due to current economic conditions.
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:
Tyler Cauble 0:00
So this episode of the commercial real estate investor podcast is brought to you by my cre accelerator mastermind, where you'll get access to my step by step investment blueprint, essentially a library of resources on how to invest in commercial real estate. You'll get connected to a supportive community of other commercial real estate investors that are doing projects just like you. You'll get personalized coaching and feedback from me every step of the way. Go to www.crecentral.com to learn more. Welcome back to the commercial real estate investor podcast. I'm your host, Tyler Cobble, and we are live from the cobble group Studios here in Nashville, Tennessee, back for another round of office hours. Excited to be with you all this morning diving into your questions around commercial real estate. Office hours is a time for you to jump in and ask your questions. I get a lot of questions, either via email or via Instagram, and I always tell you guys, hey, if you've got questions on a specific deal or something that you are working on in commercial real estate, and you want my opinion. Jump into my YouTube live streams. Tuesdays, 8:30am Central Standard Time. Happy to jump in and answer those questions. They can is saying, Good morning Tyler, good morning Vic and happy to hear from you. Thank you for being here. Gosh, it has been a hell of a week I am coming in hot. I didn't even have time to prepare this morning for a little update of what I have been up to this past week, because I literally just jumped out of a meeting. Fortunately, I do have an article for us to be jumping into from Reddit, which I think you guys are going to find pretty interesting. Came out six days ago in our commercial real estate are we headed into a full blown recession, commercial real estate prices guidance? I think it's going to be a pretty interesting discussion, because, are we headed into a full blown commercial real estate recession? I don't know. Who knows. It's going to be interesting to get everybody's thoughts on that for sure. This past week has been very interesting to say the least. I have been dealing with an issue, and I actually shared this with the with the accelerator mastermind last night, in a little experience share I had a contractor that went that we had signed an agreement with, and I've been doing this for 12 years. I've never seen this happen. I had a contractor. We had an agreement with scope of work. Everything agreed upon for $166,000 to do a job for us. I'm not going to say specifically what it was, because we're probably headed into arbitration or something. They get out there, they do the job three days before the end of it, they send us a change order for $50,000 and I said, Well, I'm not going to sign off on a change order for $50,000.03 days before the job is over. I'm not agreeing to that. Well, we already did the work. You need to go ahead and sign it heads up, guys, if anybody ever sends you a change order and says, Hey, we already did the work. You need to sign this that is not how that works. If they want to do extra work, they need to send you the change order. You need to mutually agree upon it. You need to execute that and agree to pay the extra money. The guy that did that, the project manager, supposedly got fired, I don't know. And then the one of the executives from that company stepped in to handle this deal. He said, Let me do a full accounting to make sure that we actually fully understand what we're working on here, he sends me a full accounting for $102,000 additional expenses on what they did. Keep in mind $102,000 over on a $166,000 construction job, 70% over budget. I said, No, I'm not paying that. That is on you guys, if you all wanted to go and, you know, do a whole bunch of extra work. You know, we appreciate it. Obviously it's it's going to benefit us, but that was not in the budget, that was not in the original scope of work, nor would I have agreed to it had you presented that to us. I have a problem with the way that a lot of contractors conduct their business. This is not the first time that somebody has tried to do this to us, and I'm not the only person that this has ever happened to in the commercial real estate industry. There are plenty of contractors out there that are incredible, above board people. I work with a lot of them. I'm friends with a lot of them, but there are also a lot of contractors out there who will get into a job and then slowly, oh, that, we went over a budget on this, or you've got to pay more for this, or this, that and the other. This is just a very egregious example of it, where they went 70% over budget. But it happens. It happens all the time, so I will keep you guys posted on how that goes. It's been interesting. I've never had to deal with that before. Somebody going $100,000 over budget on a $166,000 job, pretty, pretty wild. In other news, we have our next. Cre accelerator mastermind meetup, get together here in Nashville in 30 days. I can't believe it's it's 30 days away. Now, pretty excited for that. So we are going to be doing a full deal analysis and underwriting like two days workshop, which I'm pretty excited for. So we actually decided to combine the accelerator members and the brokers mastermind members for this meetup, which will be pretty cool. It's the first time we've ever combined both masterminds into one meetup. We're going to have, like, a deal pitch session on Friday night over cocktails and happy hour, and then Saturday is just going to be all teaching. And Logan Freeman, who is my partner in the brokers mastermind, he's going to come in, and he and I are going to alternate between sessions, and it's pretty cool. I think we've got eight full lessons that we're going to be teaching on how to analyze and underwrite commercial real estate deals. So it's going to be a really neat Summit. And then on Sunday, we're actually going to go and tour one of my properties. I'm going to give everybody the information on that property, and then they're going to break out into groups and underwrite it. So it's going to be a lot of fun. It's going to be a pretty cool little deal. So looking forward to that, we've got that going on. So jump in. Ask your questions, whatever you guys have. We want to hear it. And while we're waiting on that I am going to go ahead and share my screen. Are we headed to a full blown recession? Let's see that. Here's the pair of Lacey Hunt who is a well respected fund manager used to work at the Fed, just published a paper. The gist is that he warns of a confluence of five major forces, tariffs, restrictive, monetary policy, fiscal tightening, excessive federal debt and declining immigration that are collectively suppressing us. Economic growth through 2025 and potentially into 2026 the authors argue that tariffs are historically exacerbating the downturn. Fiscal stimulus from prior years has faded and new tax cuts won't take effect until 2026 federal debt has reached levels that diminish economic returns, and a sharp drop in immigration is removing a key source of labor force growth together, these factors suggest a high risk of recession and a prolonged uneven recovery, likely leading to lower long term treasury yields as growth and inflation weaken. This has been interesting because all of this like, we're starting to see it in Nashville. Nashville is a market that is very heavily driven by tourism, and we're starting to we used to see a lot of Canadian tourists. We're not seeing a lot of Canadian tourists in Nashville anymore. Like, not just anecdotally, like it is in the data, Canadians are no longer traveling to Nashville as much right now, which hurts the economy, especially in an economy that is so tourism driven that's really tough to deal with. So it'll be interesting to see what happens the top comment, I love this. Just keep cold calling, bro. That is the right answer. I mean, look, I do agree with that. It doesn't matter if you're in commercial real estate, whether we are in a recession or we are in an up market, down market, sideways market. It doesn't matter if you know, you know, retail is doing well, or office is doing well, or everything's doing poorly. Just keep cold calling, it's all going to come back at some point. I mean, you know, it's, it's pretty interesting to think about, you know, how, how people react when, when the sky is supposedly falling, it's always falling. It's always going to be falling at some point. Just keep cold calling bro like that party kegs is saying, I'll bite. This was written roughly one month ago as a reasonable proxy for sentiment. The market is up 15% since then. The trade news changes daily. So this is all out of date. What do we know about tariffs? China was about to get hit with 145% now it's 30% that's much better deal with UK was just announced. Saudi Arabia and Qatar just announced combined trade deals measured in trillions. Will all this be old news in 72 hours? Yes. So far, does it seem like some of this is good news? Yes. What will the Fed do? Who knows? Tenure is still sitting at four and a half percent, roughly where it was last year. A lot of a lot has happened since then. Will Jerome cut rates, to be determined, inflation reading just came down to 2021, levels. Is it possible it skyrockets over the next three months? Maybe, maybe not. Maybe they'll cut maybe they won't. I kind of like the way that this person wrote this, by the way, this is like, very dramatic fiscal stimulus has faded. Yes, net, net, that's probably good for our country, but it will hurt growth in the short term, debt as a percent of GDP continues to skyrocket. It was 30% in the 80s, 60% in the 90s, and 2000s 90% in 2000 10s, and it's 120%
today. Does the budget need to be balanced? Absolutely will? It probably not. Not. Will this cause a recession in 25 probably not. Are we doomed eventually? Probably yes. Immigration going down is generally a known net negative for growth. Fewer people means less spending, so that will hurt growth, but it could be a net, net good thing for the well being of our nation. They don't really give any context to that, so I don't understand how that could be. What's all this mean for commercial real estate? No idea, as a broad asset class, could construction decrease because of higher rates and costs? Yes, will that benefit existing assets because new supply is lower? Yes, could industrial be hurt because of less trade? Yes, could industrial benefit because of more domestic manufacturing. Yes, okay, I want to note on that every I keep hearing so many like people that are all for the tariffs. For one like, I'm against tariffs. We don't have to get political about it. I just don't believe that tariffs are necessarily a good thing. But the people that are for tariffs in my circles are saying, well, it's going to be good for domestic manufacturing. I'm 100% for domestic manufacturing. I think it'd be great to have domestic manufacturing. The problem is, instituting tariffs to spark domestic manufacturing doesn't make any sense, right? You're basically punishing, you know, you're put, you're taxing the American people in order to cause domestic manufacturing to happen. Will that happen? Sure you'll have some companies that will decide, hey, it's actually going to be easier for us to manufacture stateside. The problem is it's still going to be probably more expensive than it will be if we were manufacturing overseas, and it's not going to happen overnight. I got, I don't know when the last time you guys looked into building a manufacturing facility. It is an incredibly complicated and costly type of building to build and to fund. And do we need more of them, 100% don't get me wrong, I'm all on board for onshoring. Like I fully support it. I think it's a great idea. It's just not that black and white. It's not that easy as just saying, Yeah, cool. Now let's bring it all back stateside. These, these, these, everything is more complicated than it seems. Okay. Back to it. Could retail be hurt because of less discretionary spending? Yes, could retail benefit because people unsure some of their consumption patterns? Yes, do they buy more from Target and less from Amazon? Because there are fewer low cost sellers at Amazon? Yes. What is that? That doesn't even make any sense. Do they buy more from Target and less from they both have a fair amount of goods from overseas, so I don't understand how that necessarily benefits. I mean, maybe they're just saying, do they buy more brick and mortar and less online? Could office be hurt because of a recession? Yes. Could office benefit because of recession, since employers finally have the upper hand to get employees back into offices? Yes, could the push back into Office benefit retail because more people are on the roads and not at home? Not at home. Yes, get the push back into the office. Hurt retail because people aren't wasting their time buying things on the internet during working hours. Yes, could multifamily be hurt because of a recession, as more young people daily delay moving out or elect to pair up with a roommate? Yes, could multifamily benefit because a recession means fewer people are buying houses, and therefore they are forced to rent. Yes, no one knows what's going to happen. Watch the macro news with a grain of salt. Lower rates are better for all asset classes. Recessions can be good for some reasons and bad for others. Buy good assets, use that appropriately. That I actually kind of like that take pretty interesting because, I mean, here's the thing, nobody really knows, right? It could be good for some asset classes and bad for others. You know, there's no real way of telling right now. We genuinely just have no clue. We've got a lot of comments coming in right now, and so I'm going to get over to these real quick. Let's see. Julian is saying, Hey, what's good man. Julian, how you doing, dude? Good to see you here. Bob is saying, what's the main difference between a commercial loan officer versus residential? Bob, I don't even know if, if commercial lenders are called commercial loan officers, that's a good question. They may be. I've just never heard that term used typical. Typically, we just call them commercial lenders. I mean the difference is, you know, one focuses on commercial loans and the other one focuses on residential you typically will not see a commercial lender, somebody that does actual commercial loans doing anything on the residential side. Julian is saying, Do you think the tariffs are just Trump trying to keep us dollars in the US? It's not doing good now. But what about long term? They say there's more US Dollars outside of America. I don't know Julian. I mean, I. Um, I will be very honest with you, I'm not an economist. I don't know necessarily that keeping us dollars in the US is a good or a bad thing. You know? I think that there's probably pros and cons for both. Either way, it's raising the cost of goods in America right now, all shoulders is saying, Good morning, Tyler. I'm a private lender that wants to develop flex space. I found your channel on a whim. This is great stuff. Enough fluff. Just wanted to say, thanks. Oh, I appreciate that. All shoulders, thank you so much for jumping in. Glad you enjoying the channel. All shoulders saying at Bob Smith, the main difference is you want the specialist. If you are buying a gas station, find a broker that does petroleum if you are, if you want a warehouse, get a warehouse specialist, yeah, I think that's, I think that's great, great advice if you're going for commercial lenders. Not all commercial lenders are created equally. I think, you know, maybe residential loan officers will kind of say the same thing, but I think it's far more nuanced. In commercial real estate, there are commercial lenders that will specifically do ground up. There are commercial winners that will specifically do, you know, retail now, they have buckets, right, and they can loan on everything else, but some are just better at different asset classes than others. Bob is saying, how many commercial loan officers versus residential? How many small commercial lending shops versus residential? There are far more residential loan officers than commercial. You just don't need as many commercial he's saying tariffs are a distraction. A banker who specializes in loans to get gas stations. Thank you. There are tons of Yep. Let's see. Cool. Okay, I just wanted to make sure I wasn't missing anything in the comments there. All right, let's get back to it. This person saying good write up my two cents. Too many people react too quickly and too broadly based on short term info, all based mostly on fear those were the position of West debt and not tied to short midterm fed rates will always do okay. I like that point. I mean, here's the thing, what's going on right now? Is it chaotic? Absolutely. I mean, it is hard to keep your head on straight with the the chaos that is going on in the headlines. But don't let that distract you from the fact that commercial real estate is a long term investment, right? I mean, if you're trying to buy commercial real estate for the short term, I think that's incredibly risky. All of our assets like on the shorter term, we're considering a five year horizon, right? So at least think about it on a five year period, if not longer, right? From that perspective, you know, it really starts to change things and how you look at it. So don't make decisions today based on fear. Just just, you know, write it out. I think you should probably wait a minute. Let's see here. I like that. Just keep cold calling bro. My magic eight ball said, reply, hazy. Try again later. Cre prices are forward looking, so the tax cuts being delayed isn't much of an issue. Rates being high due to absurdly high deficit spending will push prices down, but the deficit spending itself will push the other direction. Immigration restriction is unmitigated downside as it will reduce overall demand and productivity. People focus on the labor aspect, which is real, but very secondary. The main issue is on the demand side, less of everything. I worry about the sustainability of our massive deficit and debt, but markets seem to have enormous appetite for American treasuries. It's the kind of thing that isn't a problem until it is a problem. Someone will be holding the bag when the music stops, and that will be a truly severe disruption. But hard to say if that will be in a year or in a decade. I agree. I mean, that to me, is the most concerning aspect of all this. Again, I don't know how that affects us, because I'm not an economist, but the US deficit continuing to grow and seemingly only getting larger, larger and larger, at some point is going to be a pretty major issue, right? So anyways, I saw that write up. I figured you guys would appreciate it. I thought it was pretty interesting. So hope you guys enjoyed that. Would love to know what are your thoughts is,
are we headed into a full blown recession? How will commercial real estate do? Let me know in the comments below. I think it'll make a make a pretty interesting conversation. Nonetheless, Femi is saying, what are the differences between retail, retail, flex and flex buildings, particularly when developing from the ground up? Well, Femi, first of all, they're all very different types of buildings, right? I mean, retail is retail, retail Flex is retail. Flex and flex is flex, right? So they're all very different types of buildings in terms of like, develop. From the ground up, you're going to be building different types of buildings. So I mean, retail is going to have a different level of finish. It's probably going to be in a different location than a retail flex would be. Like retail typically needs to be on high traffic corridors, you know, high corners. Retail flex, not necessarily, right? So, like, if you're thinking retail, think of like Starbucks. If you're thinking of retail flex, think of like a flooring showroom, right? Like Starbucks has to be on a hard corner. A flooring showroom can be kind of off on a side street, right? And then a flex building, you know, it can be, you know, office, warehouse. It can be retail warehouse. It doesn't really matter, but it can be, you know, behind off on a side street. They don't need to be visible whatsoever. And so the level of finish going into each one is really going to make up the biggest difference between those because, and honestly, like, that's where the biggest price difference is going to come from, is the level of finish. The reason that flex is so much cheaper is because you're able to get away with a metal exterior and relatively unfinished warehouses, right? I mean, you might have to insulate it, you might do some HVAC, but you'll probably do exposed ceilings, exposed walls. You're probably going to do exposed concrete? You know, you're not going to have some super high end finishes with, you know, really nice bathrooms. And, you know, not something that a customer is going to have to come in and buy, right? It's not a dental office, you know. So that's, that's really the, the biggest differences there Ricardo is saying, I've been around residential, Airbnb, short term plays now leaning into commercial with more intention. What mental shift do you think makes the biggest difference when stepping into this lane? Oh, that's a great question. Ricardo, I love that one. What is the biggest mental shift that it takes when stepping out of residential into commercial? I think, honestly, the biggest mental shift when moving, when, when making that transition, is probably the scalability. Like, honestly, like, it's, it's, it's the and I mean that in the sense of, like, making it a professional business and treating it like a professional business. What I see a lot of residential investors, and not everybody, right? Some people scale, scale their residential business, and they treat it like a true business, right? You've got employees, you've got this and the other most investors that are investing in residential real estate treat it like a hobby, or, you know, kind of like a side hustle, which means that if a tenant toilet breaks at midnight on a Friday and they're calling you, right, you're running over there and you're dealing with it, right? Whereas in commercial real estate, like it's it's much more professional. We work between nine and five. If you've got a problem after hours, you gotta deal with it, or we'll be there the next day. Or, you know, here's the after hours emergency services, right? And we have all of those systems in place. It is very much treated like a business, or the tenants handle it themselves. And so having it like actually run like a business is pretty neat. So I don't handle things for my tenants necessarily, right, like it depends on the situation, but there's just not that expectation of like this needs to be taken care of immediately. Of course, it depends on the lease and all that kind of stuff, but I think that's the biggest mental shift, is it is no longer 100% on your shoulders to take care of everything. Nor should it be if any deal that you are looking at does not financially sustain, you're hiring a property manager, paying for an attorney to negotiate the lease, paying for brokers to go out and find you tenants. It's not a deal. And I think that's what a lot of residential real estate investors moving into commercial real estate get wrong. They try and save a penny on these deals and say, Well, I'm gonna, I'm gonna lease it myself, or I'm gonna hire, I'm gonna do the property management myself, because I'll save X amount of money if you have to save that much money on your deal and do it yourself. It's not a deal worth doing. That's the exact opposite reason of why we get into buying all these properties, right? You're, buying real estate to generate the passive income and give yourself the time freedom, so that you can go and be with your family, or you can go and travel wherever you want, or you can disappear for 30 days, right? Not so that you can just buy yourself another job. And so I think that that's one thing that I like, especially in the accelerator mastermind, the the the residential real estate investors that have been doing it for a while, that's generally what I'm having to work with them on, is like, Hey, it's okay. We can treat this like a true professional investment now. And it's really cool seeing that click for them, because, dude, it changes everything. It's really, really neat. That was great. Question, thank you. Vic is saying, Tyler, hi, what commercial property app is best that you recommend? Guys? The best app that I use, like almost every day, is called land glide. L, a, n, d, g, l, i, d, e, it's awesome. I don't know if you can see that, but basically, like, I can pull up, it's like a GIS map on my phone, and I can pull up, like, I'll pull up my property right now, you guys can see, if you can see that on the camera right now, if it'll focus, maybe it won't. Yeah, you can see right there, like it's pulling up the property lines, it's pulling up the owner, it's got the address, right? And then I can actually go in there and pull up the county records and go straight to, you know, whoever the owner is, whatever. And so I use that app all the time, like, who owns this property? How big is it where, you know, all that kind of stuff. So, I mean, it's, it's honestly, like one of the best apps ever. So land glide. I think it's like 100 bucks, or 120 bucks a year. I don't even know that's how that is. How great of a deal it is. Matthew saying, Tyler, have you used any SBA seven, a or 504? Loan products? Matthew, I have not personally, I have worked with a lot of clients on the brokerage side that have. I am always recommending against it if you can avoid it, simply because the interest rates are higher, like, significant, substantially higher than you could get from a local lender and the process. I mean, dude, they're doing like FBI level background checks. I mean, it's, it is incredibly invasive, and it just takes forever that being said, if you only want to put down 10% and sometimes maybe less, they can be great options. So they can be good, they can be very good. They're just they're very tough sometimes, so I try to avoid them like so that. That's why I personally have never done one. I've seen the pain my clients have gone through. Julian is saying, All shoulders. What questions do you think I should know to ask my broker to see if they are actually good at what they do looking to buy a business? Thanks. That's a good question. Julian, so if you're talking to a business broker and you want to know what questions you should ask in terms of making sure that they actually understand what they're doing. Dude, honestly, like, I've had a lot of bad experiences with business brokers, and I know a lot of people that buy businesses that have had a lot of bad experiences with business brokers, and I don't know what it is, but a lot of them don't pay any attention to what they're doing. They either don't review the financials, they don't look at the documents, and they they don't really know much about these deals. They just collect everything, put it into a file, and then they collect 10% commissions on on these sales. It's crazy to me. I've thought about starting to offer business brokerage services under the cobble group, because there is one, such a massive marketplace for it, but two, the level of service and customer care and knowledge that we could bring to that space for the 10% commissions that they charge compared to the competition, which is, I mean, there wouldn't be any competition. But, you know, I keep telling myself, like you've got enough on your plate, like we don't have to. Just because we see a problem doesn't mean that we have to solve have to solve it. That's also what my girlfriend tells me all the time. So anyways, so you know, I would ask them, like, Have you ever bought and sold a business? And if not, why? I think that's a pretty good question to ask a business broker, because if you it's the same for commercial real estate. Like, have you ever bought and sold commercial real estate? Why? If you're working with a commercial real estate broker that's helping you buy commercial properties, and they've never bought a commercial property, they don't understand the full process. So why work with them? I mean, I that's genuinely how I feel.
Oh, let's see. All shoulders is saying Tyler for flex. How do you prefer for new to do? How do you do you prefer to do new builds or renovate a current property to your goal? I live in Santa Rosa Beach, Florida, so the luxury Flex is almost a requirement. We need to hear bad all shoulders. That's a good question today with where prices are, it is incredibly difficult to build flex space from the ground up. It just is like it just is that being said, if you can go and buy a building for relatively cheap and bring it back as flex space, that is what I. I am looking at all day, highly recommend doing, you know, some sort of micro conversion. And when I say micro, that doesn't mean like, bring back micro spaces. I just mean like, do some sort of small value add, buy a 10,000 square foot building and just throw up five walls, you know, and create six spaces or four walls and create five whatever, right? So that, you know, you can, you can just turn one big building into something smaller and generate a whole bunch of tenant demand from there, right? So that's, that's what I'm doing today. That's what I'm liking. That's what we're about to do a whole bunch of out at peerless mail. I mean, we're about to go and build out a bunch of like, 1000 to 2500 square foot little bays inside these suites, inside these buildings, because we've got plenty of suites. We've got plenty of space out there, and we might as well start taking advantage of that. And so that's what I would do. So there you have it. If you're wanting to do flex space today, I think I would hold off on building ground up, unless you just really got a great deal on it. The problem is construction costs are too high and interest rates are too high, in my opinion, to really make it make sense for where you know to where to make the numbers make sense, unless you can get rental rates that justify it. And so that's the balance you have to strike right. Every market is different. Every deal is different. Thank you guys for tuning in today. This was a great conversation. If you are listening on Spotify or Apple podcast, don't forget to rate and review. We appreciate that. I do go and read all of them. I it sincerely means a lot to me, and it helps get this podcast out there to more and more people that need to be saved from the residential real estate grind. If you're watching on YouTube, don't forget to like and subscribe and let me know in the comments what you're thinking about the show. We'll see you guys in the next one Tuesdays, 8:30am Central Standard Time. We'll see you then this episode of the commercial real estate investor podcast is brought to you by my cre accelerator mastermind, where you'll get access to my step by step investment blueprint, essentially a library of resources on how to invest in commercial real estate. You'll get connected to a supportive community of other commercial real estate investors that are doing projects just like you. You'll get personalized coaching and feedback from me every step of the way, go to www.crecentral.com to learn more you.
Alec McElhinny is an industrial owner, operator, and developer based in Texas. He was one of the earliest members of my CRE Accelerator mastermind and today, we're diving into why he decided that developing flex space from the ground up was the right move for him.