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 landlord’s market and many are reluctant to offer short-term leases because activity remains high with long-term tenants.
Below are strategies to help your company secure the space needed:
1. Leverage existing landlords where your company leases space in other markets.
Landlords will view your transaction from a national perspective and not in a vacuum of singular short-term leases. It is wise to have a national partnership or relationship with a Landlord to help in these situations.
2. Offer a pre-payment of rent.
Paying rent in advance helps ease a landlord’s reluctance towards a short-term lease.
3. Understand the landlord’s needs.
Many landlords are motivated to have occupancy at years end to meet their numbers. In many cases, short-term leases will count towards this goal. Use this knowledge for further leverage.
4. Explore subleasing.
Seek alliances and relationships with businesses that have opposite seasonal trends in the area.
5. Engage local 3PLs.
Take the opportunity to engage local third-party logistics providers who might have a keen interest in working with your company, and therefore, will be creative to build a business relationship.
And, don’t overlook one of the savviest techniques for finding space—plan and start earlier. If your company is having trouble finding space now, mark your calendar to begin your search earlier next year.
Space can still be secured for the holiday season. Don’t hesitate to begin exploring options or you might be forced into stressful situations where your company will pay more and be required to secure longer lease terms than necessary. For assistance securing industrial warehouse space, contact Brad Struck, President, Industrial Services, E Smith Realty Partners.