Increased efficiency has been top of mind in the warehousing industry world for the past three years, at least. Due to the recession, budgets were cut, staff was reduced and margins were thinned. Warehouse users had to find better ways to save expenses while maintaining efficient operations, all while trying to set their business apart from their competition in the eyes of their customers and prospects. But even as the economy continues its recovery, today’s warehouse users will be better positioned to establish an advantage in their warehousing operations by following the same principles and simple yet structured processes. To make it easy, Miller Industrial Properties has assembled these tips to help warehouse users prepare their operations for success.
1. Stay in Touch. Locate and obtain high quality market data on a regular basis. You need to track industrial real estate market statistics, market velocity and market trending.
2. Establish a Relationship. Locate an experienced, trusted industrial real estate agent who can serve as your go-to source for all things related to your warehouse use and the market.
3. Know the Players. Be very clear about who is working for the landlord and who is working for you. Base your relationships on who is on your team.
4. Be Friendly. Get to know your neighbor tenants and others who lease warehousing. Compare rents and concessions, be aware of who is expanding and contracting. Compare notes. Invaluable information is out there, so ask for it.
5. Be Prepared. Plan ahead, and not just for this fiscal year. Have a plan for your next few years and keep it current as your need to expand, contract or maintain the status quo arises.
6. Explore your Options. Keep your eyes and ears open about other developments. What does your market offer? Are other warehouse locations possibly a better fit for you?
7. Understand that Rent Cost isn’t the Only Factor. Triple net fees are expensive and a large part of the total rent. What are yours? Can they be trimmed? Do other locations offer lower utility bills due to higher technical heating/lighting? Are you exposed to capitalized expenses? If you don’t know, consult with your industrial agent from point two.
8. Look Ahead. Forecast your seasonal needs well in advance. Again, turn to your trusted real estate advisor to solve these dilemmas for you.
9. Be Helpful. Keep your agent in the know about what you know and see. He’ll appreciate your input, likely learn something and perhaps also put it into better perspective for you.
10. Test Your Sources. Check that your market sources are in fact knowledgeable, aware and hard working. Is the data accurate and correct? Do they answer your calls quickly? Are they accessible? If not, keep looking.
None of these steps require much effort on the part of the warehouse user, but the benefits are certainly there. To stay connected with industrial real estate here in northern Nevada, subscribe to our Market Advisor. It’s a quarterly publication with every detail you need to know, and it’s often the source of information found in our local papers. You can download our current issue or email firstname.lastname@example.org to join our growing subscriber list.