Tom Miller, CCIM
What to Know Before You Lease or Buy a Warehouse in Northern Nevada
1. Look for Upgrades & Consider Flexibility
There are a number of standard features in today’s modern warehouse projects. Upgrades including:
Oversized truck docks, and lots of them
Oversized trailer and chassis storage courts
Eave heights reaching 40’
The highest available bandwidth
The highest fire sprinkler ratings
Developers are increasingly incorporating these features in an attempt to keep their projects competitive now and into the future. After all, no one wants a warehouse to become functionally obsolete just a few years after it was built.
2. Be Clear on the Value of LEED Certification
In addition to the features listed above, developers today are routinely achieving LEED silver status – and occasionally shooting for Gold status. While LEED certification may have its shortcomings, it does result in some of the most energy efficient warehouses we’ve ever had available for general public use.
These are important considerations, but it’s a rare occasion that potential clients inquire about a building’s ability to flex, or its LEED certification, or even its age. And yet, along with pricing and terms, I would consider them among the most valuable questions for potential tenants and buyers.
I’ve observed that most people fail to understand the true added value in shopping for today’s most modern offerings. Ask yourself this: while it’s true you may not need soaring weave heights today, is it a possibility that your business may use them in the future? The same logic applies to many of the upgrades that are becoming standard fare in the newest warehouses. And even if your business wouldn’t use these features, consider the incentive it may hold to someone who is considering buying your company. Would a prime location in one of the most advanced facilities, with potential for growth and flexibility, serve as compelling selling feature? Plus, there is no arguing that a LEED status – which also provides a large tax savings – results in lower NNN fees charged to the tenant, which lowers your fixed operating cost. In fact, features such as the latest lighting technologies, LED fixtures with motion sensors, high efficiency heating systems and improved wall insulation all provide significantly lower operating costs to the warehouse user.
When you’re ready to look for warehouse space, don’t just ask your real estate professional about price per square foot. Ask specifically about any pricing upgrade into those top Class A spaces. You might surprise your agent with your understanding, and you might be surprised yourself with the answers.