Warehouse Properties and Working with a Broker

Current warehouse properties in the Austin can be Flex Warehouses , Bulk Warehouses, Distribution type warehouses or Office Warehouses.

A Flex Warehouse can be defined as an office warehouse. If you are looking for a warehouse property that has one hundred percent HVAC, then you should expect the lease rate to be higher for the warehouse property. Sometimes a client is looking for one hundred percent air conditioning , this will filter down the potential warehouse solutions because most warehouses (especially the older ones) do not have an air conditioned warehouse area.
Keep in mind warehouse leases are usually quoted as triple net leases where you will have a separate rate along with an operating expense added onto the monthly rent. If you are not quoted a triple net lease for a warehouse, then you could have a warehouse space that is quoted as full service where everything is included meaning utilities and janitorial costs.
One other warehouse rate could be quoted as a modified gross, modified meaning that usually the utilities and janitorial costs are covered by you as the tenant, but the lease rate per month includes expenses and is quoted as a total per month , say like $0.75 cents per month.

Flex warehouse or office warehouse properties tend to have a higher finish out along with HVAC in place that covers one hundred percent of the space. Ceiling heights in Flex warehouse space are not necessarily has high as a bulk warehouse so if you need high ceilings this may not be the solution for you.

Expect an average of 3% per year for your lease rate to bump for a warehouse property. The cheapest warehouse property type are the metal warehouses , if you go this route don’t expect low electric bills they conduct heat and get very hot in the summer.

Why ask a Broker to represent you?

Fact: If you have a commercial real estate broker representing you , you will be able to get a better deal. Why?
Well, let’s think about this from a common sense point of view. If you do not practice and live in the commercial real estate business for a living, you have a disadvantage in knowing what are the best properties and rates and where are the best warehouse properties located? You will also receive expertise that prevents you from making a poor leasing or purchasing decision on warehouse property in Austin. Would Jerry Jones hire a quarterback for the Dallas Cowboys with no agreement in place? Of course not, when a broker represents you they ask you for an agreement, the agreement should have no fees and can be cancelled if you are not happy. It covers you as the tenant or the buyer because it outlines the responsibility of the broker to you and not to the seller or the landlord.
How would you like a broker to tell a seller or a landlord that you are willing to pay more for a property than they are asking? A good broker offers you all of their services for free that is right for free
One Exception is: if a seller or the landlord does not pay a commisison on the warehouse you want to lease or purchase then a commission will come from you as the client.
However, that is a very rare occurence and it is a pro-active discussion so there are not any surprises. As a client, you have everything to gain, you don’t have to spend time running around, figuring out the industry, figuring out what to negotiate on, figuring out lease or contract language, figuring out where are contractors or legal advisors if you need them? How much time can you save? What would it be like to have an expert on your team that cares only about you and your interests?
Contact us today for your warehouse leasing or purchasing requirements!

Whether you need an office or a warehouse, you can get the help you need with great follow up and tools that structure the whole process for you.
For office leasing or office condo purchases, visit: www.Austin-Office.com