How to lease industrial real estate

Who is your ideal customer? This should be the first parameter you identify because it will tell you where your leased space should be located.

For instance, if you own an e-commerce warehouse operation, location is critical for last-mile delivery.

Or if you lease office space for employees, you will want a location convenient for them.

• Last Touch® properties can reach large dense, affluent populations within hours. Buildings tend to be the oldest and smallest and are often located in infill locations.
• City distribution properties are well positioned to provide one- to two-day shipping to a large market. Buildings are typically small to midsize and located in urban areas.
• Multi-market distribution facilities strike the balance between location and functionality. Buildings are often newer, larger and located near key transportation hubs at the edge of major urban areas.
• Gateway facilities are multi-market buildings that incorporate access to major sea and intermodal ports.

How much space do you need to run your business?

Knowing the number of employees and/or customers you expect in the space simultaneously will help define the square footage you need.

You must be able to afford your lease. Knowing your monthly maximum budget is essential when shopping for space. Include your expected utilities and CAM fees in max budget calculations.

On average, utilities typically run around $2 per square foot annually. CAM fees will generally range between 15 percent and 35 percent of your annual lease payment.