Lease Accounting: A White Paper on FASB Changes

In February, 2016, the Financial Accounting Standards Board (FASB) issued a new standard that requires tenants to recognize most rental contracts on their balance sheets. This is a significant change from the existing standard for lease accounting. The new standard is effective for interim and annual reporting periods beginning on or after December 15, 2018 for publicly traded companies and …

Future Growth Locations for the US Distribution Center Market

By Jim Hazard, SIOR and Susan Arledge, SIOR E Smith Realty PartnersNovember, 2016 Many distribution center locations are driven by the results of a supply chain study. Other follow where competitors tend to locate and some simply select the major market hubs. While focusing on the obvious choice for a DC, too few select locations where the company will be …

National Minimum Wage Increases Will Impact Distribution Center Logistics Costs

May 12, 2016 – by Brad Struck, SIOR, President of Industrial Services Rising minimum wages in cities and states around the country could have a negative impact on labor costs relative to distribution centers, e-commerce fulfillment centers and industrial building tenants. The cities in the map above have already approved increases in the minimum wage beyond the federal minimum of …

The Millennial Movement: How the Workforce’s Youngest Generation Will Shape the World of Commercial Real Estate

April 11, 2016 – 9:00am Jeff Bounds The phone rings constantly at Joseph Cahoon’s office at Southern Methodist University in Dallas. The director of the Folsom Institute for Real Estate at SMU’s Cox School of Business says the calls come from commercial real estate executives nationwide who need mid-level analysts with several years of experience. “Those don’t exist,” Cahoon says. …

Leveraging Millennials for Distribution Success

Feb. 3, 2016 – by Brad Struck, SIOR President of Industrial Services More than one-in-three American workers today are millennials (born between 1984 and 2004), and have now surpassed Generation X to become the largest share of the American workforce. This is definitely a generation worthy of consideration in the commercial real estate market. According to a recent report written by …

Five Tips for Finding Short-term Overflow Warehouse Space

Aug. 17, 2015 – by Brad Struck, SIOR, President of Industrial Services The summer months are when many retailers are planning for excess overflow warehouse space for the peak of the upcoming holiday season. This space is increasingly more difficult to find as the national vacancy rate for warehouse space continues to decline. As a result, it has become a …

How To Leverage Your Commercial Lease Into Cash For Your Company

If your company has quality credit, there are opportunities to procure cash in exchange for a long-term leases. Cap rates have compressed in key distribution markets and investors are strongly competing for credit industrial leases. Sophisticated tenants are maximizing and leveraging this demand into excess cash when leasing large distribution centers. This cash can be used for Material Handling Equipment …

The Most Important Challenge in Locating a Retail Distribution Center

May 1, 2015 – by Brad Struck, SIOR, President of Industrial Services In the past when selecting a site location for a distribution center the first considerations would be inbound/outbound transportation costs, rental rates, number of existing buildings, price of land, taxes, incentives, and cost of labor. These are all very important but the availability, quality and cost of labor …