Tom Miller, CCIM
3 Tools Every Warehousing Tenant Should be Using
It never varies – the instant an industrial real estate tenant gets settled into a warehouse location, whether it’s here in northern Nevada or at any point across the country, the focus immediately turns to running the business. As it should! And then at some point down the road, a lease renewal comes along and the tenant and his or her agent deal with it as quickly as possible, so they continue with the business of running their business. So what’s the problem? It’s simple. When a tenant is 100% preoccupied with running his or her business, allowances are made for a location that may be less than ideal. Savvy tenants should always keep a close eye on one of the largest fixed costs to the logistics operation. How? By relying on a professional industrial real estate agent to do the heavy lifting for them.
Certain agencies are leaders in maintaining highly specific and accurate industrial real estate market data, and what’s more, they make this data available to clients on a quarterly basis. If you get the right data, it is chock full of market details on pricing and vacancies from the last quarter to date, with included comparisons last year as well as trends moving forward, and important market changes and occurrences. This is incredibly valuable information for anyone in the industrial real estate market – particularly a tenant.
Take Advantage of Freebies
Those same agencies often perform free lease analyses, in which your lease terms are carefully reviewed to ensure you’re getting the best possible deal. It’s a highly revealing process that can quickly reveal whether your company’s largest fixed cost is working for you, or against you.
If there’s an option for a lease abstract, take it. It’s a very useful tool that outlines all of the important features, responsibilities and options in your agreement, giving you a thorough understanding of where you lie.
Some agencies also offer a graphical spreadsheet that logs your rent as compared to market historical tents and forecasted rents. Calculations on lease savings or overpayments are also shown.
Be Forthright – Ask for a Better Deal
Put your agent to work as your final tool – ask him or her to stay alert for better deals. When the bottom line matters, a move to a new location can be a very wise decision. Staying current on what the market is allowing is always a smart place to put yourself.
If you haven’t been putting these tools to use, we can help. Contact us today, and let’s begin.