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In a ‘perfect world,’ one would be able to back a trailer up to a 4’ dock-high dock, or a 2’ semi-dock, open the doors and start loading or unloading. Of course, we don’t live in a perfect world (with or without quotes), so you may need a dock-leveler…
In Commercial Real Estate leases, Common Area Maintenance, or CAM, refers to activities related to areas and items shared between tenants in a multi-tenant building or complex…
In Commercial Real Estate Leases, an Expense Cap typically refers to expenses that are passed along from the landlord to the tenant for Common Area Maintenance of a building…
In Commercial Real Estate, a Modified Industrial Lease involves modifications to the Industrial Gross Lease. The modifications can vary, but the tenant often pays for certain items contributing to a Multi-Tenant building’s Common Area Maintenance…
In commercial real estate, there is often confusion regarding the differences between a Gross and a Net Lease, along with their variations. Before diving in, it’s important to understand that tenants will ultimately pay for just about everything. Net leases break down the details into Base Rent plus Operating Expenses…
A side load dock well allows for dock-high loading access to containers in a truck court with very limited depth and is feasible to add to an existing grade-level building…
Paved or stabilized yards have many uses. They can be used to store inventory - i.e. pipe and other items that can withstand the elements - as shown in the attached photo. They can even be used to display inventory, as in the case of processed stone used for countertops. They can also serve as a place to park trucks and trailers - empty and loaded. With proper security, gating and fencing, they can be a reasonably secure place for these and many other items.
So, why not just buy some land and place these items onto it? The purpose of land stabilization is to prevent heavy materials stored on or moving across that land from sinking into the ground. Roads are a primary form of stabilization. Vehicle tire contact points concentrate the vehicle’s weight and represent an excellent example of the need for and the challenges of stabilization. A broad range of situations drives the need for stabilization. In this article, we’ll discuss:
For the record, we are not discussing stabilizing your back yard here. We are discussing industrial grade stabilization - probably an acre or much more.
General warehousing does not typically require electrical service beyond that needed to operate an office area with HVAC and general warehouse lighting and light-duty electrical plugs. Adding large amounts of electrical service can be quite expensive.
Having access to rail siding (doors on rail cars are generally on the side - hence “rail siding” - see photo), which is actually serviced (meaning a rail provider will use the track…
When it comes to warehouse operations, the term “clear height” plays a pivotal role in determining the efficiency and functionality of the space. But what exactly is clear height, and why is it so crucial for businesses that depend on warehouses for storage and operations?…
Locating and acquiring the perfect tract of land to develop can be quite challenging. An experienced developer and its real estate broker can conduct initial due diligence to help avoid costly issues. However, more in-depth inspections and research are necessary before finalizing a purchase…
Explore how dock wells enhance warehouse operations by providing both dock-high loading and grade-level access, and learn best practices for implementation…
“Commercial warehouse” as a label is broadly used to describe a number of types of commercial space typically offered for lease or rent. For purposes of this article, we will use Five (5) main categories.
Typically grade level, this type of building is suited to businesses that provide a product and need to receive materials/items and ship out materials/items which may be at grade level or at dock high. The dock-high loading requirement with smaller freestanding buildings is usually facilitated thru use of in ground dock truck wells where the truck backs down a ramp to adjust for the height of the shipping container.
Used for the distribution of palletized products in large volume, these buildings have true 4’ dock high loading with multiple doors, high clear height and fire protection systems.
With grade level overhead doors and ample outside storage yard, these buildings often have large overhead cranes, heavy power and high clear heights.
Heavy office ratio and air-conditioned and heated areas used for tech or assembly are common with Flex space. High parking ratios and generally higher end business park settings are also popular with this type.
Used to transfer goods quickly from container to container, these buildings are usually very shallow and long to allow for a very high number of offloading spaces and overhead doors. Additionally, an abundance of trailer storage area and staging yard is normally required.
These are some of the main categories of buildings in Commercial Warehouses which are found for Lease.
For a more recent article with an updated list, go here.
For help finding a qualified industrial broker in your area and the perfect warehouse for your business call WarehouseFinder.net at 800.814.4214
“So we need to lease a warehouse - how much free rent can you get us?” That is a common question I get from my clients. It generally does not matter if they are local or global, $100k/year or $100mm/year, everyone wants to feel they got the upper-hand or a good “deal.” But what does “free rent” really mean?
Free rent is, in most circumstances, a period of time where the tenant pays no rent or partial rent during the lease. This period is usually front loaded on the lease term. This is a great marketing ploy for landlords and is generally a win for the tenant too. It is pushed as a savings in rent to offset move-in and set-up costs incurred by the tenant. Free rent is also called “Rental Abatement” - which is, as a description, generally more palatable to Landlords. Owners hate to give away money. At the end of the day, owners want to lease their properties up and if they can lease it now, give a few months of free rent and eliminate the risk of additional months of vacancy, then it ends up being a wash for the owner.
Let me explain the tricks around Free Rent. Typically, free rent is never free. Rental abatement is recouped later in the lease. While time value of money may be gained, the Landlord will generally pad his proposal to account for any opportunity costs. As an example, if you as the tenant want to rent 10,000 SF for 60 months and the Landlord gives you 3 months free rent, he will typically add the months to the term of the lease - so 63 months. Now the Landlord will want rental increases in later years and will start those “bumps” in month 13 of the lease. Now the added three months will be at the highest rate in the term, thereby increasing the average rate over the lease.
Free rent up front is a plus for the tenant, provided the tenant does not have to pay more in rate over the term in order to get the free rent.
Looking for Warehouse, Office or other space in Houston or elsewhere? Needing to renew your lease?
Contact the WarehouseFinder.NET Broker Affiliate Network below.
Centermark Commercial Real Estate specializes in Industrial and Office in the Greater Houston area. CCRE is the exclusive affiliate broker for WarehouseFinder.NET in Houston, TX.
This article attempts to answer the question “Can I achieve dock-high loading/unloading using a grade-level building?” The fundamental problem addressed by warehouse loading areas - or docks in this article - is how facility team members get materials from the shipping surface of trucks, trains, etc., onto the facility floor for further handling…
If you are considering renting, leasing or purchasing a warehouse facility and would like to get off to the best start possible, I advise taking ample time to define your needs in a facility. Here are some specific criteria to consider…
A Full-Service Lease, typically applicable to multi-tenant office buildings, offers one monthly rate that encompasses all costs associated with the property, such as electricity, janitorial services, management, property taxes, and property insurance. This lease type allows the landlord to pass along any increases in expenses to the tenants each year.
A Triple Net (NNN) lease is a popular type of commercial real estate lease agreement where the tenant is responsible for paying the base rental amount each month to the landlord. In addition to the base rent, the tenant also reimburses the landlord monthly for their pro-rata share of certain estimated…
The industrial gross lease is common in multi-tenant industrial properties. In an industrial gross lease, the tenant is responsible for some, but not all, of the operating expenses of the property…
Unlock the essentials of dock-high loading—from standard heights to truck compatibility—and discover how it enhances warehouse efficiency..
As seasoned commercial real estate brokers, we have a firm grasp on our market. We know which buildings are available, understand restrictions, zoning, are aware of proposed developments and are up to date on comparable sales or rents.
With 100’s of transactions negotiated, we are experts at closing a deal. Our specialty is “thinking outside the box” to get deals done that may be difficult.
Having vast experience with commercial earnest money and lease contracts helps prevent many legal hurdles that arise when the client’s attorney gets the documentation. Also, we make suggestions and point out red flags to legal counsel to avoid problems for our clients.
Seller notes, bridge loans, mezz loans, conventional, SBA, Seller seconds…we have seen it all and have relationships with lenders which have money to lend at competitive rates. Most of all they are familiar with the Houston Market.
Not all commercial real estate brokers understand different types of commercial construction and the advantages/disadvantages of each as well as related reproduction costs. Since we also do development, we have seen what goes into a new building.
Above all, we are here to look out for your interests. As many of our clients will attest, if we feel the deal is not right for you, we will tell you. Our success comes from repeat business and referrals. Unhappy clients do not make for long term success.
Let our experience, knowledge and loyalty work for you.
Looking for Warehouse or Office space in Houston?
Centermark Commercial Real Estate specializes in Industrial and Office in the Greater Houston area. CCRE is the exclusive affiliate broker for WarehouseFinder.NET in Houston, TX.
Over three decades of commercial real estate leasing experience in warehouse and office markets, we’ve encountered numerous lease arrangements and responsibilities. This article aims to provide a comprehensive overview of the most common lease types…
Overview Committing to a lease for 3, 5, 7, or 10 years is a monumental consideration for a business. Remember what you are committing to - rent and expenses for the overall lease period. Whether moving into the first property for your business or moving from one location to another…
The following are a few of about 40 checklist items we typically cover in our due diligence when assisting clients:
Looking for Warehouse, Office or other space in Houston of elsewhere?
Centermark Commercial Real Estate specializes in Industrial and Office in the Greater Houston area. CCRE is the exclusive affiliate broker for WarehouseFinder.NET in Houston, TX.
Distribution, manufacturing, service, fabrication, storage and many other uses occupy millions of warehouses around the world. Goods go in, goods go out, machinery goes in, machinery goes out - and on and on - through docks. Understanding the types of access to these warehouses is imperative when evaluating business needs and alternative facilities available. In this article we will explore several widely used loading types.
So you found your perfect office and/or warehouse. It is the right square footage, has adequate ceiling heights and yard area and is in a good location. You just went under contract at the Title Company. Now what?
Now the real important work begins. There will almost always be several buildings that fit your requirement, however finding the one with few to no issues is a different story. Many brokers feel their work is done once the property is under contract. This is far from the truth. A good commercial broker shines once the contract clock starts ticking.
Free items first
While there are numerous due diligence items which have to be handled, I always put the questions on the top of the checklist which won’t cost my client anything to get answered. That way if my Buyer can’t live with these he won’t waste money on phase one environmental studies, appraisals and further attorney fees.
Physical inspection of the property is more than just looking at the obvious components of the warehouse and or office as the roof, structure, paving, electrical and mechanical systems. The ones that can be missed are indications of standing water near the building which may be caused from poor drainage. Does the roof drain to one side or does it collect in the middle of the building in a gutter, which may be problematic. If you have an office building, do you have enough parking, adequate and efficient HVAC? Does the building meet ADA codes? If an office warehouse, is the truck court adequate, is there enough power, is the rail siding up to the rail provider’s specs? The structural, MEP and environmental studies should be handled by licensed professionals…however they often miss issues. A second set of eyes is important.
Documents contained in the Seller deliveries and the title commitment are the first to get tackled. While attorney consultation is a must with contract and commitment review, a quality broker can make valuable suggestions that an attorney may miss and then can evaluate. The title commitment should provide copies of any recorded deed restrictions on the property which may be problematic. At this stage local zoning should also be confirmed for the same reason. Encumbrances evidenced in the commitment may also be revealed such as an easement which may prohibit the Buyers intended use. Again a good real estate attorney is important at this point.
Looking for Warehouse or Office space in Houston?
Centermark Commercial Real Estate specializes in Industrial and Office in the Greater Houston area. CCRE is the exclusive affiliate broker for WarehouseFinder.NET in Houston, TX.
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