Maintenance Responsibilities for Industrial Occupiers

One of the main areas I recommend industrial occupiers pay close attention to in lease negotiations are the responsibilities of who maintains, repairs, and replaces building systems and components under a lease. Leases follow the 80/20 rule. 80% of lease content most likely won’t impact operations or P&L. 20% of lease content will. Maintenance, repair,Continue reading “Maintenance Responsibilities for Industrial Occupiers”

Site Selection for Land-Intensive Occupiers in Infill Areas

Key Concepts Industrial properties with 30% or less improvement square feet compared to land square feet (“low coverage”) are increasingly scarce in metropolitan areas of the United States Land-intensive industrial uses, which typically use low coverage industrial properties, can be challenging to entitle and therefore understanding zoning is critical to a project’s success Successful siteContinue reading “Site Selection for Land-Intensive Occupiers in Infill Areas”

Strategic Use of Transaction Documents in Commercial Real Estate (Part 1)

The selection, construction, and use of transaction documents is an important part of negotiating any commercial real estate transaction. Transaction documents define the parties to the transaction, the business terms to be agreed upon, and the time frame in which the parties can agree. They create the playing field for the negotiation to take place. AContinue reading “Strategic Use of Transaction Documents in Commercial Real Estate (Part 1)”

Layout of Supply Chain Real Estate

Why Building Layout Matters At its very basic level, the industrial building is two dimensional, meaning that it consists of a width and a length, or widths and lengths if irregularly shaped. While three dimensional topics such as clearance heights and sprinkler systems often determine an industrial building’s utility, it’s layout can be equally important. Continue reading “Layout of Supply Chain Real Estate”

The Basics of Cold Storage Real Estate

Cold or refrigerated storage is a specialized industrial real estate product type which plays an important role in the global cold chain and greater worldwide supply chain. As the name would imply, cold storage is simply the storage of goods at temperatures less than ambient. Cushman & Wakefield’s Los Angeles based team of Mike Foley,Continue reading “The Basics of Cold Storage Real Estate”

Is Warehouse Demand Shrinking?

On June 22nd the Journal of Commerce (JOC) published an article titled “Long-awaited US inventory drawdown spotted” where they state in the first sentence, “Lower US inventories would be a boon from coastal ports to heartland highways”. The notable exception to such a boon, as they cite in the next paragraph of the article, isContinue reading “Is Warehouse Demand Shrinking?”

The Future of Industrial Real Estate

Advancements in technology are disrupting the function and design of industrial real estate. Since these advancements are believed to be exponential, perhaps to an extent, the industrial real estate of tomorrow promises to be very different than today. Technologies such as autonomous vehicles, 3D printing, robotics, and the internet of things (IoT) exist and willContinue reading “The Future of Industrial Real Estate”

Evaluating Real Estate Transactions

Last week I had the privilege of attending two CoreNet seminars in Dallas. These seminars focused on the financial evaluation of corporate real estate and real estate’s impact on a company’s financial statements. These seminars were excellent and thoughtful reviews of the way real estate professionals should evaluate and think about corporate real estate financially.Continue reading “Evaluating Real Estate Transactions”

Lighting for Today’s Industrial Property

Lighting is a critical component of today’s supply chain real estate. The use of light, whether artificial or natural, affects the costs, labor, compliance and environmental elements of an industrial operation. Therefore, facility decision makers and designers should have a keen awareness of how light is employed in their facilities. This post reviews the importance ofContinue reading “Lighting for Today’s Industrial Property”

Bays and Column Spacing

As part of my final project for the Global Logistics Specialist program at California State Long Beach (GLS Website), my team and I determined the cubic capacity and utilization for an entire network of fictitious warehouses run by a fictitious retailer. We found that the bay and column spacing within a warehouse can have a significantContinue reading “Bays and Column Spacing”