Category Archives: Tenants

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Why are sale-leasebacks trending?

As the local industrial real estate market continues to march along in what feels like zero percent vacancy, it’s actually 1.5% to 3.0% depending on which report you read and to what size range that report is geared, we are beginning to see a trend among owner-occupied buildings. Something we haven’t seen since mid-2000s, can anyone guess?
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Q1-2016

A Slight Change in Sentiment?

First off, thank you very much for reading the Mid- Counties Industrial Quarterly Newsletter. We have been working very hard to deliver real time Local Industrial Real Estate market information and insight based on our 100+ hour per week schedule.

As we reflect on 2015 and the momentum and market share we’ve gained, we want to thank the 30 Owner, Tenants, Buyers and Sellers that we had the privilege of providing our real time real estate knowledge and honest service to in 2015. Without your trust and friendship we would not have been able to complete over $35 million dollars in sales and leasing consideration in ’15 alone. Continue reading

Beyond the Cones of Local Expansion Projects

From the Mid-Counties Market Newsletter, Q3 2015. Download the full newsletter (PDF).

The Mid-Counties Industrial Quarterly Newsletter has sounded like a broken record for the past 4 quarters: “Limited Inventory For Sale”, “Price increasing with every deal”, Class A properties are being leased quickly and functionally obsolete buildings are sitting a bit longer! Sound Familiar?! Continue reading

“Why Don’t Owners List their Properties the Same? They Always have Extra Fees. It’s So Frustrating!”

There are many answers to that question, but it’s generally for accounting purposes. We won’t go into the details here, but what we would like to discuss are the differences between Triple Net leases NNN and Gross leases. Generally speaking, the out of pocket expense will actually be very similar, however, “The Devil Lies in the Details”. Continue reading

Where Does Your Building Fit into the Mix?

VIEW AS A PDF

As a local market expert I often get asked by Buyers and Tenants, “What are prices going to do?” Well, if you ask 10 people that question, you will probably get 10 answers, most of them being varied. My response would be, “I have no idea”. However, I can tell you this. The market is extremely dynamic, Right Now! Continue reading

Joel-Hutak-MidCounties-Industrial-Notes

Tips for Tenants

Common Leasing Tips

  • MOST IMPORTANT: Use a local Market Expert to be educated and update on the Market. This way YOU will know when “The Deal” presents itself and you don’t have to hope the Agent’s opinion has your best interests in mind. Trust Us, your relative, who has a real estate license is not going to save you money BUT they will cost you Time!
  • Negotiate a favorable market rate, free rent, Tenant-Improvements; Security Deposit reductions over time etc.
  • Limited Pass-Thru exposure by negotiating a Cap on CAM’s or NNN’s. If you don’t know what those are, call us!
  • Increase Warranty Periods; HVAC, Mechanical Features, Roof.

Advantages of Leasing a Building

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Tenant Relocation Check List

Download this Check-List as a PDF

Have you been properly educated on the current market conditions by an active agent?

Would you consider purchasing if the right building were available?
If so, Have you met with a Bank for Pre-Approval?

What major factors attracted you to your current location? Price?
Functionality? Location? Amenities? Proximity to freeways, labor, pool? Proximity to supplier’s, vendors, customers?

Can you move away from these important factors?

Will your use restrict you to specific zoning with recent zone changes?

Will your use prohibit you from operating within certain cities?
If so, which and why?

What do you anticipate to be your biggest challenge in finding a new or second location?

How long do you think it will take to identify a building?

How long do you anticipate it will take to move your facility?

What is your current lease situation?

Have you budgeted for carrying both your new and current lease during the transition and marketing time?

Does that fit into your “Best scenario” timeframe? Will the move interfere with your “Busy Time” or coincide with your “Slow Time”?

Will you need to consult with other decision makers within or outside the company? Perhaps your suppliers, in terms of re-establishing needed permits?

Have you set aside a proper budget for the move?
Have you received recent quotes from your service providers?
Racking Co? Electrician? Moving Co? Are they within budget?

What is it about your last move that you liked or disliked?

Is there anything you would definitely change about your current location?

What is precipitating the need to move? Why do you need the space?
Slow organic growth? Change in business model?

Is what led to the need for additional space sustainable?
Could a temporary, second location suit you better?

Local Resources

Below is a list of local municipalities and oversight agencies we often work with and recommend to our clients:

Cities:

Utilities:

Phone/Internet:

I-5 Expansion Project Information:

Regulatory Agencies: