The landscape for acquiring industrial property has changed dramatically over the past year. After brick-and-mortar retail came to a screeching halt in early 2020 due to the COVID -19 pandemic, online purchases soared, and since then, retailers have been leasing the existing industrial warehouse space in Columbus, Ohio, at an unparalleled pace.
The NAI Ohio Equities Industrial Property Team explained that their business has flip-flopped with the majority of their 2021 representation being on the tenant side, where it has traditionally been on the landlord side.
Industrial warehouse space is hard to come by, so when you find it, you need to be ready to commit to the deal. To help with your search, we recommend considering these seven ways to prepare for your industrial property search heading into 2022.
1. Timing is Everything.
- Gone are the days of leisurely exploring industrial options. In today’s market, be prepared to start early and for your search to last longer.
- The sooner you begin the search process, the better. Supply chain issues have been delaying tenant improvements and occupancy dates even after you have a fully negotiated lease.
2. Be Prepared.
- Knowing how much and what kind of space you need before beginning your search is imperative. This includes office requirements as well.
3. Budget for Inflation.
- Construction costs are currently rising at a rapid rate, explained industrial broker Matt Osowski. If you know your space will require improvements, make sure you factor in that potential cost increase.
4. It’s a Landlord’s Market.
- Though new leases typically come with a built-in tenant improvement budget, that may change or lessen as the market favors landlords.
5. Be Flexible.
- With warehouse properties in high demand, it may not be possible to get everything on your wish list. Decisions will need to be made about what is most important. Being open to different locations might open up additional opportunities.
6. Move Fast.
- Rates are continuing to increase as demand grows. The sooner the lease is signed, chances are you will get a better rate than if you wait.
- Once you have found that coveted warehouse space, the process is going to move quickly. Start to finish, deals are closing faster than ever before.
7. Choose Wisely.
- Selecting a broker who understands the climate of the market and how to navigate it is critical. There are many considerations and skills involved in negotiating a lease and finding a space that will meet your needs. Making the right choice in representation will make all the difference in getting through the process as smoothly as possible.
About NAI Ohio Equities
Operating as Central Ohio’s largest, locally-owned commercial real estate company; NAI Ohio Equities has been serving the Columbus real estate market for 50 years. Our mission is to provide the highest quality real estate service by adding value to our client’s assets and real estate needs through expert analysis, market knowledge, and personalized service.
As Central Ohio’s local leader in commercial real estate, NAI Ohio Equities employs more than 25 experienced agents that together make up our qualified Brokerage Department. We also have an experienced Property Management Division managing more than 12 million square feet of property including various home-owner associations, multi-tenant office building, medical office buildings, industrial facilities, and retail buildings throughout Central Ohio.
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