Typically, an industrial real estate tenant settles into a new warehouse location and immediately turns all attention back to running the business. Of course, that makes perfect sense. But at some point in the future, it will come time for a lease renewal and in many cases, the tenant and his agent will handle it as quickly as possible and get back to business. Here’s why that’s a problem – when a tenant is fully focused with running a business, they may be unknowingly making allowances for a location that really isn’t ideal. Savvy tenants stay tuned in to one of the biggest fixed costs of the logistics operation – and they make that happen by finding the right industrial real estate agent to do it for them.
To stay in the know about your warehouse and the local market, here are five tools you or your industrial real estate agent should be using no matter where your warehouse is located.
Staying Familiar With Local Market Numbers
Certain agencies maintain current, specific and accurate industrial real estate market data, and they make it available to clients quarterly. The right data includes details on pricing and vacancies from the last quarter until now, along with comparisons to last year and trends moving forward, plus the most important market changes and occurrences. This is incredibly valuable information for anyone in the industrial real estate market – especially a tenant.
Taking Advantage of Freebies, including:
Free lease analyses – this means your lease terms are carefully reviewed so you know whether you’re getting the best possible deal. It’s a process that shines a light on whether your company’s largest fixed cost is working for you, or against you.
Lease abstract – This useful tool outlines all of the important features, responsibilities and options in your agreement, giving you a thorough understanding of where you lie.
Rent comparison spreadsheets – Some agencies also offer a graphical spreadsheet that logs your current rent in comparison to historical market tents and forecasted rents as well. Calculations on lease savings or overpayments may also be shown.
Asking 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 the best possible decision. Staying current on what the market is allowing is always a smart place to be.
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