Industrial Leasing 101: What You Should Know
Date Posted: December 27, 2018
2017 saw record- high demand for industrial commercial real estate and this trend is continuing into 2018. Here in the Buffalo-Niagara Region alone we have over 110 million square feet of industrial space including over 64 million square feet of manufacturing space, 42.5 million square feet of warehouse / distribution space, and 3.2 million square feet of office service space. With a vacancy rate hovering around 9%, the demand for quality, move-in ready industrial space is high.
Industrial users and their commercial real estate needs vary. Some are prospective buyers while others are looking to lease. Some need 32’ clear spans while other users may be just fine with a 13’ ceiling. Column spacing? Power? It all comes into consideration when searching for that perfect space.
Are you looking to make a move in the industrial market? In this high-demand market, it’s best to be prepared prior to meeting with landlords. Whether you’re buying or leasing, here are 3 things to keep in mind!
#1. KNOW THE NEIGHBORHOOD
While location may not be the first thing that comes to mind when choosing an industrial property, there are many factors to be aware of here. For example, many industrial users, namely distribution centers, prefer to have access to a nearby Thruway or Expressway. Industrial users may also prefer to be set away from residential neighborhoods and must be aware of applicable Zoning allowances. Perhaps you prefer to operate near other industrial users, or maybe you’re looking for privacy. It all boils down to location, location, location.
#2. KNOW YOUR REQUIREMENTS
Industrial users, like office and retail users, have unique requirements for their real estate. From building size and accessibility to power and parking there are many factors to be considered. Before you begin your search, try jotting down the requirements your space must meet, along with some wish list items. Having specific requirements in mind will allow you to fine tune your search results while also allowing you to quickly eliminate properties that do not meet said requirements.
#3. KNOW THE MARKET
You may be aware of your building requirements, but are you aware of the current market where you’re looking to buy or lease? Do you know the average asking rate on industrial leases? How about the average cost per square foot to purchase an industrial building? Have you formed relationships with area landlords and developers? Are you confident in negotiating quoted rents? Are you aware of current tenant feedback? For these reasons, and many more, it is recommended you work with a licensed, real estate professional when searching for your new space. From researching availabilities to off-market opportunities, site tours, rent negotiations, and more the team at Cushman & Wakefield Pyramid Brokerage Company has you covered. Don’t go it alone!
Are you looking to buy or lease industrial commercial real estate? Keep these tips in mind as you begin your search. Looking for more? Head to www.pyramidbrokerage.com!
Contributors to this article include:
Benedict J. Borruso
Taylor Griffith works in Marketing Support & Research for Cushman & Wakefield Pyramid Brokerage Company based in Buffalo, NY. Taylor is a Licensed Real Estate Professional and has 8+ years’ experience in social media management.