Warehouses are also listed as industrial property within the commercial real estate industry. What does it take when it comes to making a decision about warehouse leasing for your company? Do you know what your future needs will be?What about the difference between buying a warehouse versus leasing a warehouse, and utilizing a specialist broker in the warehouse space silo to help you navigate your potential solutions.
Growth Near Term and in the Future?
Do you have enough warehouse space to hold your inventory now and in the future? What about location? Location preferences are sometimes not easily procured due to current market conditions, so how flexible are you? Where does your business go if you outgrow your warehouse space during your leasing term? Typically tenants will quote square footage instead of budget , where truly it is a more of a matter of budget versus square footage of the warehouse property.
What about term? Again this is dictated by the current market for leasing a warehouse, in a hot market even a renewal request can be 3-5 yrs as an expectation from the landlord. How long will you need a warehouse? Leasing a warehouse in Austin’s market in 2016 requires minimums of 3-5 yrs for the most part, in hot markets landlords do not get very excited about leasing their property for 1-2 yrs when the demand is so high. Think about it, if you owned a rental would you want a tenant longer term or short term and turning the property every couple years for new tenants? Commercial real estate is about positive cash flow over a longer term not short term- again though this is market dependent.
What is it going to take?
Leasing a warehouse will require at minimum the following requirements from any tenant.
Credit- good credit , startups with so so credit can expect extra security deposits and personal guarantees to be put in place
Tenant improvements- don’t expect to always find a warehouse that matches all of your needs exactly – although warehouse properties typically do not require the extensive finish out that office space or retail may require.
Power- how much power do you require and what are you going to use it for?
Noise factors- this may be ok with the industrial complex or not, do you need a standalone? We placed a Bass speaker manufacturer at the airport because noise was such a big factor in finding them a property to lease.
Hazardous materials- are you using any do you store any? If so, expect extra insurance carrying requirements
Insurance and Security deposits – don’t ever expect not to have to carry insurance or make a security deposit , it is not reasonable to expect that.
Why Shire Commercial?
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Testimonials
Warehouse purchase We have a very unique business and we needed a unique space. Steve hung in there with us for over a year. This was our first commercial purchases and he guided us through the process with patience and enthusiasm. Now if only … Read more
Warehouse purchase
Independence Title “You are absolutely one of the best agents to work with” – Marilyn Van Uum-Independence Title
Independence Title
Office Condo Purchase “Thank you so much Steve. I also greatly appreciate you sending me info about title insurance! You really are awesome at what you do!!
Dr Shirin Bazaz
Office Condo Purchase
Joe Schaefer PhD “I utilized Steve Shire to find two different spaces for my businesses, I could not believe I got great research and negotiations without a hitch, it was much more than I expected”
Joe Schaefer PhD
T Burns - Colorado Bldg Corp “Steve, you did a good job as Melissa and Kelley’s tenant broker andmade negotiations more efficient for me as a Landlord”
T Burns - Colorado Bldg Corp
Stacy Bishop “We were in the process of looking for a new office and warehouse space for our growing business. We then found Steve Shire who was very pleasant to work with. He helped us view alot of properties and we found a great one th… Read more
Stacy Bishop
Roy Prosise Dedicated, honest, responsive caring profesional. My experience with Steve shire was steller! My schedule was a little hectic and Steve accommodated me with no hesitation. Steve took great care of me and I would highly recomm… Read more
Roy Prosise
Warehouse Purchase Completed Warehouse Purchase – Retailer in Austin Location: N Lamar , SF : 6,260 SF Time to complete 3 Months
This purchase required creativity and an outside of the box approach because the Buyer-Owner could not obtain direct fin… Read more
Warehouse Purchase Completed
Lease completed testimonial Steve Shire was exceptional and met all of our expectations. We worked with him remotely to secure a space in Austin for the relocation of our business and Steve made it easy. He is excellent at communication and really on hi… Read more
Lease completed testimonial
Warehouse Purchase - Foreclosure This property was a super find for a Buyer-Owner that needed to be between San Antonio and the Austin area. They were originally looking to lease a warehouse space. Shire Commercial found the client a foreclosure that was a v… Read more
for the most part, in hot markets landlords do not get very excited about leasing their property for 1-2 yrs when the demand is so high. Think about it, if you owned a rental would you want a tenant longer term or short term and turning the property every couple years for new tenants? Commercial real estate is about positive cash flow over a longer term not short term- again though this is market dependent.
