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Flex Space
Validation Checklist

15 items that separate projects worth building from ones that bleed money. Run every site through this before you spend a dollar on permits or construction.

✓ 15 validation items ✓ 4 critical categories ✓ Based on 9-module curriculum
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✓ You've cleared all 15 checks

Your project has passed basic validation. The full 9-module course goes deeper on every item — financial modeling, tenant acquisition, and the operating playbook that runs after you open.

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Section 01
Market Research
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Identify 3+ competitor flex spaces within 30 miles
Visit them in person if possible. Note vacancy rates, rent prices, amenities, and how long units have been listed.
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Survey 10+ local contractors about workspace needs
Trades willing to pay for garage space, their bay size preferences, and must-have features (3-phase power, drive-up access, height clearance).
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Verify zoning allows commercial/industrial use on the parcel
Call the municipality directly. "Light industrial" or "flex use" zoning is ideal. Mixed-use may require a variance — factor in 6-18 months of approval time.
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Section 02
Financial Validation
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Calculate break-even occupancy rate
Total monthly fixed costs ÷ (total bays × target rent per bay). A healthy project breaks even at <65% occupancy, giving you a 35% vacancy buffer.
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Get 3 construction cost estimates
One from a general contractor, one from a specialized industrial builder, one from a recent comparable project in your area. Wide variance = red flag on scope.
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Model 3-year cash flow with conservative assumptions
Use 70% occupancy year 1, 80% year 2, 85% year 3. Stress-test at 50% occupancy. If you can't cover debt service at 50%, renegotiate construction costs or lot price.
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Confirm financing terms and reserve requirements
Know your total capital stack (loan + equity). Lenders typically require 6 months operating reserve on top of construction draw. Budget for this before closing.
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Section 03
Site Selection
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Confirm lot size supports minimum 6 bays
Standard bay footprint is 14×40 ft + shared apron. Account for setbacks, parking, and future expansion. Under 6 bays rarely pencils — too little revenue to cover fixed overhead.
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Verify utility access: 3-phase power, water, sewer
Call the utility company before going under contract. Bringing 3-phase power from a distant transformer can add $20-80K to project costs — a deal-killer on thin margins.
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Check road access for trucks and trailers
Tenants haul equipment. Can a 40-ft trailer make the turn into your lot? Is the road rated for heavy vehicles? Tight access = tenant complaints and lease non-renewals.
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Review environmental history (Phase I ESA if needed)
Industrial land has a past. Search county records for prior uses. If there's any indication of contamination, order a Phase I Environmental Site Assessment — required by most lenders anyway.
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Section 04
Tenant Pipeline
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Pre-lease 30%+ of bays before breaking ground
Letters of intent, not just verbal interest. 30% pre-leased signals real demand and gives your lender confidence. Aim for 50%+ if you can manage the sales timeline.
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Define ideal tenant profile (trade, bay size, lease term)
Who is your best tenant? HVAC contractor needing 800 sq ft? Landscaper needing equipment storage? Knowing your profile focuses your marketing and helps you screen fast.
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Set competitive rent range ($250–$400/mo per bay)
Verify against your market comp research. Price too low and you undercut yourself on exit cap rate. Price too high and you sit vacant. The sweet spot is 5-10% below the highest comp at launch.
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Establish lease terms and tenant screening criteria
Month-to-month vs. 12-month leases, security deposit policy, allowed uses, insurance requirements. Standardize before you sign the first tenant — inconsistency invites disputes.
What's next

The checklist is just the beginning.

The full 9-module course covers everything in detail — financial modeling templates, lease agreement frameworks, tenant acquisition playbooks, and the operational systems that run the business after you open.

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9-Module Course

Self-paced. Market research through exit strategies. Lifetime access with all future updates.

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90-minute deep dive on your specific project. Site review, financial model walkthrough, deal structure advice.

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