It’s not uncommon for the typical industrial real estate agent to move into a new space and refocus completely on business. This works just fine – until lease renewal time rolls around. In most cases, the tenant and his or her agent will then deal with it as quickly as possible and then get back to work. But that can be a sign of trouble. Why? Because when a tenant is completely immersed in the business, he or she may be oblivious to allowances that are being made regarding a less-than-ideal location. It’s the savvy industrial real estate tenant who pays attention to one of the biggest fixed costs of the logistics operation. But they don’t do it alone. Instead, they partner with the right industrial real estate agent.
5 Tips for Staying Knowledgeable
Staying current about your warehouse and the current market is critical. Here are five tips about how to do just that – and all tools your agent should have on hand.
Local Market Numbers
The maintenance of current, specific and accurate industrial real estate market data is something a few firms do here in northern Nevada. These firms also make this valuable information available to their clients quarterly. The right data should include details on pricing and vacancies from the previous quarter until now, plus comparisons to last year and trends moving forward, as well as the most important market changes and occurrences. This is useful information for anyone in the industrial real estate market – particularly a tenant.
Having Your Lease Analyzed
Having your lease terms carefully reviewed will make it clear whether you’re getting the best possible deal – or not. This process analyzes whether your company’s largest fixed cost is working for or against you.
Requesting a Lease Abstract
This tool reviews your lease, outlining important features, responsibilities and options in the agreement and giving you a comprehensive understanding of where you lie. Note that this is a valuable service you receive from the right agent.
Requesting Rent Comparison Spreadsheets
Some agencies offer a graphical spreadsheet that compares your current rent to both historical market tents and forecasted rents. Calculations on lease savings or overpayments can also be shown, if you’re dealing with the right agent.
Putting Your Agent to work
Your agent should be on the alert for better deals. When the bottom line matters – and it always does – relocating to a different possibility can be the smartest decision.
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