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When most tenants are looking at warehouse space, they’re obviously concerned with usable space, pricing, and location.

And rightfully so. But the here’s the trick question... how do you know if they’re getting a good deal or not?

Sure, comps come to mind. Simple cap rates help.

But what if, based on actual space utilization, your client is overpaying for a larger space than they need?

Or what if, based on what they’re proposing to store, you run into a costly mistake that can set them back several hundred thousand?

Risk #1: Warehouse Design Utilization

Usable warehouse space, may not be that usable in reality.

It’s not the size that matters - it’s how you use it.

A client will never be able to utilize 100% of the space, and depending on how the layout and design is set-up, that number can drop like a rock. Even seemingly simple mistakes, like the proper aisle spacing, can have a huge affect.

For example, when the warehouse is actually up-and-running, will a forklift be able to easily get around?

Another common problem is wasted space like building columns with odd locations that can seriously hinder warehouse usability. This is especially true of a client is going to “grow into a space” with future growth. Having to move or adjust layout, but then running into stumbling blocks when it’s already too late, can cause major problems.

Wasted space, means wasted money for clients. And these problems can add up quickly.

 

Risk #2: Permit Problems

Permitting is always a nightmare. But especially so when it comes to warehouse fire safety.

Depending on what your client is planning on holding, they might need to retrofit their new space with a fire sprinkler system that can tack on an extra $300,000 and two months of delays.

Even if the space already has a fire sprinkler set-up, it might not be good enough. City inspectors might come back and still require upgrades or updates.

Which comes out of the client’s pocket. And most likely, yours too (if not this time, then next time).

 

How a Pre-Leasing Analysis Can Help You Avoid these Issues

A pre-leasing analysis is part of a free consulting site visit to help your clients determine exactly what they’ll need now, and in the near future.

Analyzing potential buildings for lease or buy potential -- prior to signing a lease -- is the easiest (and cheapest) way to make sure you don’t run into any of these issues.

During the site visit and analysis, the building will be measured and plans can be created (even if they don’t already exist). Then these measurements are turned into 3D drawings and video demonstrations to show your client exactly how it will look and feel - prior to being built out.

Scoping to this level of detail will also rule out any problems that future growth might pose, and help you figure out the best way to avoid permit problems months in advance. That way you won’t have to worry about any costly mistakes or timely delays killing your deal, or derailing your clients timelines.

Oh, and they’re free.

Contact us today to set-up a site visit and learn more about how our pre-leasing analysis can help.