Criteria 1 – Size Needed
Does size matter? Well, in this case it certainly does. To properly evaluate your present and future industrial warehouse needs, we need clarity on your current scenario and how recent changes resulting from the global pandemic, supply chain challenges, and the E-Commerce revolution have affected you.
Asking the right questions early in the process will help guide us into making the right decision on what size space is best for you. For example, we are currently working with companies that, as a result of current economic conditions, find it best to reduce their overall space and get more efficient. Others are taking on extra space now, subleasing the excess short term, and providing built-in room for expansion in future years.
Our team can help you interpret the current conditions and how they relate to your business so that you can understand your occupancy cost and revenue potential and properly decide which strategy is right for you.
Criteria 2 - Functionality
This has become an even more serious consideration these days as warehouse inventory is so scarce. I have heard it said that the best building amenity nowadays is “availability.” While this highlights how finding available space remains challenging, it still does not justify leasing “any” building… although we are not that far off. Depending on the nature of your business, occupants need to be very clear on what are the most important two or three features to them and be willing to compromise on most other building characteristics. A willingness to be flexible on your checklist will provide more options for you to consider, often bringing about creative ideas on how to better utilize warehouse space.
Criteria 3 - Budget
After asking ”What do we want?” and ”What do we need?”, the million dollar question becomes ”What can we afford?”
We saved this for last because size and functionality really have a lot to say about what you should anticipate and how flexible you can be with your budget.
For example, if you need a modern high ceiling high density calculated sprinkler system building, be prepared for a much higher cost PSF than if you can utilize a 2nd or 3rd generation lower ceiling manufacturing building. When considering your budget, we also have to look down the road to see if there will be budget constraints or potentially more capital available in the future. With future growth on the horizon, we can stretch your budget in the short-term in anticipation of increased revenue to cover the occupancy cost.
In conclusion, in today’s market the more flexible we can be, the more options we open up in our search for available industrial warehouse space. And more often than not, when we are flexible, the “right” building turns out to be the “perfect” building.
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Christopher J. Destino, SIOR, a Principal at Lee & Associates, is an engaging, responsive professional who enjoys working closely with his clients and helping them succeed.
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