Blog
Understanding Warehouse Operating Costs And Tips for Reducing TCO
A lease that looks affordable on paper can become 25% more expensive once operating expenses are added. So whether you’re leasing or buying warehouse space, it’s imperative to understand the warehouse operating costs involved with maintaining a building. While the monthly rental rate may be an eye-catching number, it’s definitely not the only number to understand before closing the deal. Warehouse expenses vary greatly depending on the lease structure (NNN will have the highest operational costs on top of base rent), location and tax rates, building features, the size of the warehouse, type of usage, and whether or not the space is shared with another tenant. Building insurance, common area maintenance costs, and utilities are just some of the most common operational costs that you should factor in when deciding on a warehouse space to lease. With a clear understanding of what goes into warehouse operating costs, you can not [...]
Exit Strategy Planning for Industrial Tenants – How to Exit Seamlessly, Minus the Hassle
Industrial lease exits require a well-executed strategy in order to minimize downtime and financial loss. The best time to start planning your real estate exit strategy is at the beginning of a lease – even if your exit seems a long way away. Negotiating lease agreement clauses, creating an exit timeline, and checking on legal protections can help mitigate problems later on in your lease. But even if you’re already months or years into your lease, there are steps you can take to create and maintain a good exit strategy that will allow you to move on gracefully. As a tenant, taking a strategic approach to your exit strategy is helpful whether business operations are flourishing (and you need a bigger building) or business is slow (and you need to cut costs). […]
Office Location Strategy: 10 Categories You Shouldn’t Skip When Choosing an Office Location
Choosing the right location for your office lease is more than just a real estate decision – it’s a business strategy. A well-thought-out approach to the right office location impacts talent access, client engagement, business reputation, and the potential for future growth. The right office location strategy is one of the top ways to gain a competitive advantage in your business sphere. Combining affordable rental rates, easy accessibility for team members, amenity-rich locations, and high-visibility areas takes data-driven insights and a careful site selection process, but in the end, it pays dividends, leading to satisfied employees, brand exposure, and long-term success. […]
Warehouse Space Planning – How to Maximize Efficiency and Prepare for Future Growth
The right warehouse building provides the infrastructure and storage space needed for operational efficiency. But planning for current operations isn’t enough – at least not without an eye toward the future. When leasing industrial space, you need an effective warehouse layout for today’s business needs, but one that also won’t limit your future needs in the next 2-5 years. Planning for sustainable growth is a critical component in leasing warehouse space, and with careful planning, it will give your company a competitive edge even in a crowded real estate market. […]
How to Check a Commercial Landlord’s Reputation Before Leasing (And Why It Matters for Tenants)
You’ve found the perfect commercial space for the next phase of business growth. It’s situated just off the interstate, giving employees and clients easy access. It has the exact amenities you wanted, enough space for daily operations with a little room to grow, and the rent falls exactly in the middle of your budget range. It seems perfect for smooth business operations. You move the business in and get to work. Within a month, you realize there’s moisture dripping from the ceiling in the lobby, the HVAC system only works two-thirds of the time, and the grass hasn’t been mowed since you moved in. Paint is peeling near the entryway, several light fixtures flicker, and trash lingers around the dumpster pad. Worst of all, the last 10 calls you’ve made to your landlord have gone straight to voicemail. The disheveled look of the building is starting to be noticed by [...]
Calculating Total Cost of Occupancy (TCO) for an Office Lease: 7 Costs You Need to Check
When evaluating an office space lease, most tenants want to know the cost per square foot. This number is helpful, but in reality, a building’s base rent may not actually be the most important number. While it does play a role in the total cost of a building, base rent may only make up 1/2 – 2/3 of the total occupancy cost of a building. Unfortunately, many tenants overlook the hidden lease costs (maintenance, taxes, utilities, etc.) that can skew budget forecasting and distort the actual cost comparison between two properties. Calculating the total cost of occupancy gives you a much more realistic view of the true cost of renting an office space. TCO includes not only base rent, but also operating expenses, utilities, administrative costs, future rent escalations, and more. Understanding total cost of occupancy (TCO) allows you to make smart leasing decisions, budget accurately, and negotiate more efficiently. [...]
