ComReal Industrial Real Estate Podcast: Recent Episodes
Edison Vasquez PA
Podcast discussing topics related to Industrial Real Estate for South Florida and across the Country. You can also watch the episodes on our YouTube channel, ComRealEdison
Thanks for following us and for checking us out. This is Episode 21 and we are discussing how Retail Closures are Yielding Opportunities for Industrial Real Estate.
Covid 19 has presented challenges for the retail sector of commercial real estate. Even Pre-Covid, this sector was already facing many challenges, as the trend was was moving towards e-commerce. This trend is now accelerated. Still the retail properties can offer opportunities for the industrial sector:
•Location: A lot of the retail centers have great locations, close to large populations. Last Mile. •Large Lots: In the case of malls and big box stores, these sits in large parcels of land. •Hybrid Use: We are also seeing existing retailers using their location as fulfillment centers. Specially in those with great location. •Trend not changing: More e-commerce and delivery. Featured Property: 20,000 SF For Lease at 8850 NW 15th ST
Industrial Tip: Make zoning contingency separate from other contingencies.
Thanks for watching us. Please subscribe and leave us your comments. You can find more about us at: www.WarehousesMarket.com
You can also watch this episode on our Youtube Channel:
www.WarehousesTV.com
Follow us on social media at:
Instagram: @edisonindustrial
Twitter: @edisoncre
LinkedIn: Edison Vasquez PA.
Facebook: @edisonindustrial
Thanks for following us! This is Episode 20 of our Industrial Real Estate Podcast. We are discussing how Industrial Investors can avoid Analysis Paralysis after the Covid-19 pandemic. You can read the entire article in our blog:
https://www.warehousesmarket.com/blog
New and seasoned investors can tend to over-analyze an investment and miss an opportunity. Totally normal. In our work, we see many buyers trying to get all information they can before even making an offer. Then by the time they make a decision, the deal is no longer available. To try to avoid that. In this episode, we explain 5 multiple things to look for to avoid analysis paralysis
- Cost: Buyers tend to not factor in the cost of Waiting too long and NOT buying the property.
- Time: Think of the holding time. Not what you’ll pay. Over time, the difference becomes less relevant.
- Repairs:
- Quickly assess any repairs needed and focus on large expenses. Then once you have the building under contract, you can dig more into all costs for repairs.
- Property Class:
- Be flexible and open to look at options. If requirement is too narrow, there will be limited opportunities to analyze.
- Local Laws: Check zoning and authorized uses quickly. Once under contract, you can confirm all permits and confirmation from local municipalities.
Featured Requirement: 50,000 – 70,000SF To Lease
Industrial Tip: Make an offer first, get the property under control, then conduct all due diligence.
Thanks for watching us. Please subscribe and leave us your comments. You can find more about us at:
www.WarehousesMarket.com
Follow us on social media at:
Instagram: @edisonindustrial
Twitter: @edisoncre
LinkedIn: Edison Vasquez PA.
Thanks for following us! This is Episode 19 of ComReal’s Industrial Real Estate Podcast. Bringing you market information along with valuable information on the Industrial Real Estate Sector in South Florida, and across the country. Visit our website for more info and our listings.
https://www.warehousesmarket.com
Buying a building for the business can be a great strategy and winning long term investment. There are many terms involved in the purchase process and sometimes it can get complicated. Here we explain 5 of the most common terms found on purchase contracts.
- Effective Date: Date the contract is executed, and deposits are made. Clock starts for inspections and financing.
- Due Diligence
- Buyer gets to inspect property and make sure it fits for business. From building to zoning. If anything is not satisfactory, Buyer can cancel contract and get escrow deposit back.
- Use this period to find out anything, not before making an offer. Many Buyer lose properties because they spend too much time doing Due Diligence items before having control of property.
- Financing Contingency
- During this period, Buyer can obtain financing (SBA, Conventional), if applicable, for the purchase of the property. . Can run at same time as Due Diligence.
- Escrow Deposit
- Good faith deposit with Escrow agent. Done at contract execution and after contingencies. Common practice is to deposit it at Buyer’s attorney escrow account. Third party escrow agent could be used too.
- Assignment: Many buyers assign the contract to a related entity. Very standard. Owners a lot of time want to separate the business entity from the property entity.
Featured Property: We have a client looking to Purchase 60,000 – 90,000SF Industrial Building in South Florida.
Industrial Tip: Consider Releasing escrow after inspections and financing contingencies. Helps Seller show you are committed to building.
Thanks for watching us. Hope this is helpful. Please subscribe and leave us your comments. You can find more about us at:
www.WarehousesMarket.com
Follow us on social media at:
Instagram: @edisonindustrial
Twitter: @edisoncre
LinkedIn: Edison Vasquez PA.
Thanks for following us! This is Episode 18 of ComReal’s Industrial Real Estate Podcast. Bringing you market information along with valuable information on the Industrial Real Estate Sector in South Florida, and across the country. Visit our website for more info and our listings.
https://www.warehousesmarket.com
More investors than ever are looking at Industrial Real Estate to diversify their investment. From small to large investors, the industrial sector is attracting a lot of attention and capital. All this, along with limited supply, makes it a very competitive market. Now more than ever is important for investors to differentiate and consider carving niches to maximize returns. Here are some examples of sectors within Industrial Real Estate in which investors might consider specializing.
- Cold Storage Facilities.
- Consider looking at Refrigerated or Freezer facilities. This will give investors an edge over other industrial landlords.
- Small Bay Multitenant.
- Another sector that can provide an advantage. These facilities offer higher rents; however, these require more management
- Truck Terminals
- Excellent facilities to play the e-commerce trend. These properties have low lot coverage in that the building sits on a large parcel of land.
- Truck Parking.
- Investor might not even need to build a building. Truck parking has become hot commodity as land continues to be developed and less available for truck parking.
Featured Property: 7857 NW 46th ST Doral, FL 33166. +/- 7,335SF Facility for sale. Asking $1,550,000.
Industrial Tip: Make offers on same properties every 3- 6 months.
Thanks for watching us. Hope this is helpful. Please subscribe and leave us your comments. You can find more about us at:
www.WarehousesMarket.com
Follow us on social media at:
Instagram: @edisonindustrial
Twitter: @edisoncre
LinkedIn: Edison Vasquez PA.
Thanks for following us! This is Episode 17 of ComReal’s Industrial Real Estate Podcast. In this Episode, Edison Vasquez explains tips for owners of industrial building on how to prepare a building when it’s time to lease or sell it. Visit our website for more info and our listings.
https://www.warehousesmarket.com
In all Real Estate, first impressions are important to maximize value of the space. Tenants and Buyers would more like go for a space where they have to do less improvement and can visualize their business operating quickly. It’s important for a landlord to present a clean and organize warehouse. Some tips to consider:
- Clean Office Space and Bathrooms
- Paint any walls that need panting in the office and warehouse. Interior and Exterior.
- Clean Warehouse Floors
- Resurface, restripe parking
- Change lights on the Office and Warehouse. No need to modify floors or move walls.
- Make any roof repairs that will extend the life of the roof.
- Improve Landscape around the property.
All these improvements will provide a great return on investment when it comes time to leasing or selling the property.
Industrial Tip: Get a Survey or Floor plan done ahead of time.
Featured Property: 13964 NW 60th Ave. +/- 39,855SF For Sub-Lease Refrigerated Facility.
Industrial Tip: Get a Survey or Floor plan done ahead of time.
Thanks for watching us. Hope this is helpful. Please subscribe and leave us your comments. You can find more about us at:
www.WarehousesMarket.com
Follow us on social media at:
Instagram: @edisonindustrial
Twitter: @edisoncre
LinkedIn: Edison Vasquez PA.
Thanks for following! This is Episode 16 of our Industrial Real Estate Podcast. Today we bring you tips on finding off-market deals for industrial real estate. Visit out website for info and our listings.
https://www.warehousesmarket.com
Off—Market deals are always appealing for Buyers; even more now as the demand for industrial space continues to be strong. But how do you get these deals? Our saying is Great Deals are created, Not Found He we discuss a few tips for landing off-market deals.
- Properties for Lease
- Check properties for lease and make offers on those properties.
- Make a list of Target properties and reach out to owners
- Put a spreadsheet or a simple list of properties that fits your criteria.
- Make offers, don’t just send letter to ask, call, email and mail.
- Follow up.
- Be creative on mail. Send a gift card.
- Talk to other brokers for “pocket listings”.
- Brokers in the industry might have clients who are considering selling.
- Persistence, Persistence and more Persistence.
- Stay after and keep sending offers.
Featured Property: 405 E 10th CT. +/- 40,000SF For Lease in Hialeah. Best Deal in the market!
Industrial Tip: Make offers all the time. Sounds simple but a lot of buyers and brokers don’t do it. Consistence will bring deals.
Thanks for watching us. Hope this is helpful. Please subscribe and leave us your comments. You can find more about us at:
www.WarehousesMarket.com
Follow us on social media at:
Instagram: @edisonindustrial
Twitter: @edisoncre
LinkedIn: Edison Vasquez PA.
Thanks for following! This is Episode 15 of our Industrial Real Estate Podcast. We are discussing the most common terms used by Landlord and Tenants in the Leasing of warehouse space. You can read the entire article and see all terms in out blog:
https://www.warehousesmarket.com/blog
Leasing a warehouse space can sometimes be a complicated process and there are many terms tenants might not be familiar. Our blog outlines most of the common terms used by landlord and tenants. Here are the top 5 that are more important to remember:
- Base Rent: Very common on NNN leases. This is the rent that goes to landlord and separate from operating expenses and property taxes.
- Common Area Maintenance (CAM): These are the expenses the landlord pays for maintenance on the building. Includes but not limited to Property Taxes, Property Insurance and exterior maintenance.
- Gross Lease vs. NNN Lease: Most landlords are now moving towards NNN leases. The big difference is that a gross lease, the lease rate include all operating expenses, and the NNN lease separates the “Base Rent” vs. “CAM”.
- Build-out/Leasehold Improvements: These are improvements that Landlord plans to do for the space to the benefit of the tenant. Also might increase the value of the building. This includes Office buildout, warehouse lights, refrigeration equipment and others.
- Lease Concessions: This can also be seen as incentives from Landlord to help the tenant during the transition. It can a simple month of free rent or cash to tenant to build out specific office or others.
Featured Property: 1800 NW 89th PL.
Industrial Tip: Have landlord deliver turnkey space, even if paying a bit more.
Featured Property: 1800 NW 89th PL: +/- 106,046SF building with refrigeration on Doral. For sale or Lease.
Industrial Tip: Consider having the landlord deliver the space in turn-key condition. Even if it’s a bit more expensive on rent. This will help with headaches of coordinating contractors and build-out. Plus, tenants can concentrate on their business.
Thanks for watching us. Hope this is helpful. Please subscribe and leave us your comments. You can find more about us at:
www.WarehousesMarket.com
Follow us on social media at:
Instagram: @edisonindustrial
Twitter: @edisoncre
LinkedIn: Edison Vasquez PA.
Thanks for following! This is Episode 14 of our Industrial Real Estate Podcast. We are discussing the accelerating demand for cold storage facilities after the Covid-19 pandemic. You can read the entire article in our blog:
https://www.warehousesmarket.com/blog
Cooler Warehouses are Hot! Demand for cold storage has been increasing over the last few years and now this pandemic has accelerated this trend. Studies suggest that an additional 75 – 100 million SF of refrigerated space will be needed. Here are a five trends to look for in this sector:
- Exponential growth of E-commerce Grocery delivery
- Public Warehouse Consolidation. Existing Cold Storage companies merging.
- Fulfillment centers inside retail Big Box retail shops.
- Shift is restaurant from dine into delivery and pick up. No need for retail.
- Automation will make facilities more efficient. Specially in land supply constraint sites. Higher building with less need for personnel.
We are also seeing Investment Funds adding cold storage facilities to their portfolios. It’s an 180 degree turn from a few years ago when they showed no interest in these facilities. Our team recently completed the sale of two large (157,000SF and 80,000SF) cold storage facilities, fully leased, here in South Florida.
Featured Property: 12707 Le Jenue Rd 10,000 – 81,000SF. Refrigerated space Available for Lease at $13/SF.
Industrial Tip: If you own your refrigeration equipment and the landlord wants you to remove it after lease expiration, then you could find another company to take over your equipment and they can sign a new lease with your landlord. You can advertise the space for sublease with your broker and that way find a company to take over.
Thanks for watching us. Please subscribe and leave us your comments. You can find more about us at:
www.WarehousesMarket.com
Follow us on social media at:
Instagram: @edisonindustrial
Twitter: @edisoncre
LinkedIn: Edison Vasquez PA.
Thanks for following and listening! This is Episode 13 of our Industrial Real Estate Podcast. In this episode we bring you the 5 factors to consider when choosing a warehouse location. Hope you enjoy it. Please subscribe and leave us your comments. Check out our website and follow on Social Media.
Location, Location, Location is Relevant in Industrial Real Estate. Deciding on a warehouse location is a significant decision that impacts every aspect of a business -- finding a balance between a convenient location and a reasonable rent price is integral. The location of your warehouse directly contributes to the efficiency of your company as well as the overall customer experience.
•Desired Consumer Base •Proximity to Carrier Services Think of time, not miles •Storage Requirements Extra Space, Zoning, Landlord helps you grow, Refrigeration/Equipment •Workforce Availability. •Longevity - How long would I stay here.
Our team can assist you with search and options.
Featured Property: 13694 NW 60th Ave. +/- 39,855SF For Sublease.
Industrial Tip: Lease if you have to get location. Many times the business operation and real estate investment don't go together. It's ok to lease to get the right location and grow the business. For example, Amazon doesn't own most of their distribution center. They know they can get higher returns on their business.
Thanks following. Check our website and social media.
www.WarehousesMarket.com
Instagram: @edisonindustrial
Twitter: @edisoncre
LinkedIn: Edison Vasquez PA.
Watch Episode on YouTube: YouTube.com/ComRealEdison
Thanks for following us! We bring you Episode 12 of our Industrial Real Estate Podcast. In this episode we review why Tenants of Industrial Properties need a Broker to Represent them.
Leasing an industrial property can be a complex task. A tenant will need guidance through the process from an expert in the industry and area. Additionally, the landlord will most likely have an agent representing him, looking after his best interest. A tenant needs an agent to represent him and negotiate the best terms. Here is a summary with the top reasons to have an agent when leasing a warehouse:
•Tenant Rep Works for you •You will have access to more properties •It will save you time and money •You get added negotiation power •Lease Term can be confusing •You’ll get exactly what you need. •Team of resources at your disposal •You don’t have to pay for the service
Featured Property: 3100 NW 74th AVE Miami, FL 33166. It's a +/- 35,500SF warehouse for Sublease. Best rate in the area.
Industrial Tip: If the landlord requires extra security deposit or personal guarantee to sign a lease; have landlord refund your extra deposit after year 2-3 lease. Or waive personal guarantee after those years.
Thanks for checkin our our Podcast! Please Subscribe and leave us a rating. Send us your questions and feedback too.
You can find more info on our website www.WarehousesMarket.com
Watch the episode on our Youtube Channel: www.YouTube.com/ComRealEdison
Follow on Social Media:
Instagram: @edisonindustrial
Twitter: @edisoncre
LinkedIn: Edison Vasquez P.A.
Thanks for following us! This is Episode 11 of our Industrial Real Estate Podcast. We are discussing the top 5 questions to ask when hiring a new leasing broker, or a broker for a sale of an industrial building. You can read our article on our Blog page under our website: www.warehousesmarket.com/Blog
Here are the questions to keep in mind.
- Does this leasing firm have a good reputation?
Do your research online, check for what they've done and current listings. Ask list of deals. Also references you can rely on. Be sure they don't have conflict of interest by having competing properties.
- How well does this firm know the local market?
Check how long the firm has been in business. Ask about lease rates, sale comparables. Plus what target tenants or buyers they'll target.
- How well does this firm know your specific property type?
Do they do all real estate, commercial or only industrial? Your property requires attention so be sure the agent specializes on your property. In many markets, including Miami, residential agents tend to list commercial properties. This can create delays and mis-pricing of properties as these agents are not experienced on commercial real estate.
- What channels would the broker use to market your property?
As to show you a map of all marketing outlets they’ll use.
- What other services does this brokerage firm offer?
Do they have a networks of service providers? Including management company, contractors.
Featured Property: 405 E 10th Ct: +/- 40,000SF. For lease in Hialeah. Only $8/SF Industrial gross.
Industrial Tip: When selecting a broker to do the leasing and/or sales, consider choosing a team, rather than individuals. This will ensure your property is well serviced and exposed.
Thanks for watching and for your following us. Please Subscribe and/or leave your questions or comments. Stayed tuned for more episodes.
You can find us on Social Media at:
Instagram: @edisonindustrial
Twitter: @edisoncre
Linkedin: Edison Vasquez PA.
Thanks for following us! This is Episode 10 of our Industrial Real Estate Podcast. We are covering the topic of Sale-Leaseback, following an article we posted on our Blog.
Sale-Leaseback can be defined as a transaction in which the seller of an asset is able to lease out the property from the buyer immediately after the sale is finalized. Most businesses will engage in a sale leaseback when trying to free up capital by untying cash in an asset or other investments without getting rid of the resource that is vital to operations.
Seller Benefits:
Free Up Capital to work at higher rate of return.
Lock market price.
Maintain business as usual
Less Management
Easier than Financing
Buyer Advantages:
Predictable rate of return
Customized lease terms
You can check out the full article on our Blog: https://www.warehousesmarket.com/what-is-a-sale-leaseback-on-industrial-properties
For this Episode our Featured Listing is : 12707 Le Jenue Rd, Up to 75,000SF of cooler space for lease in Miami, Florida.
Industrial Tip: During negotiations of Sale-Leaseback, remember that owners can ask for improvements from the new owner. In this case, when the owner becomes a tenant, they could get concessions or free rent to make certain improvements.
Thanks for following us. Check us on Social Media:
Instagram: @edisonindustrial
Twitter: @edisoncre
Linkedin: Edison Vasquez PA Tune in for another episode next week.
During Q2 2020, the economy saw one of the hardest financial crisis in decades, due to the coronavirus. Despite that, Industrial real estate performed relatively well, including here in Miami. On Episode 9 of the podcast, Edison brings us the latest statistics for this quarter. One interesting milestone for the market was that it crossed 250,000,000SF in inventory.
The Statistics for this quarter were:
Vacancy Rate: 5.3%
Average Lease Rate: 12.55/SF
Average Sale Price: $155/SF
We featured our listing at 1800 NW 89th PL. +/- 106,046SF For Sale or Lease.
The Industrial Market continues strong even after Covid-19 pandemic.
Follow us on Instagram @edisonindustrial on Twitter @edisoncre and Linkedin at Edison Vasquez PA.
Thanks for following us
"Last Mile" warehouses have become very popular in the industrial real estate world. So what are these? Edison explains what's classified as "last mile" warehouses. How the rise of e-commerce has created a huge demand for these properties. A trend expected to continue. Location, location, location matters on industrial real estate too. That means competition for land with other real estate sectors. As demand increases developers also look at two-story warehouses or multi story warehouses, popular in Asia and other countries. You can read our entire article at https://www.warehousesmarket.com/last-mile-warehouses-are-popular-now-what-are-these.
Also, we bring you our industrial tip for this episode. What to do if a tenant's use is heavy industrial and there is concerns of environmental issues.
You can watch this episode on video on our Youtube channel:
https://youtu.be/iJeGVgKlA6A
Thanks for following us! Leave us your questions or comments.
Thanks for tuning into all of our episodes! On this episode we go over the statistics for the first quarter of 2019 on Miami's industrial real estate market. Reviewing lease rates, vacancy rates and all the large leases and sales done on the market.
Market continues its strong trends forward and the statistics show it.
If you have any questions or need more details on any statistics, feel free to reach out to us at 786-433-2380 or visit us at www.MiamiIndustrialTeam.com
Thanks tuning in to our Podcast! We try to bring helpful information on buying, leasing and selling industrial properties. In this episode we breakdown 8 invaluable steps Buyers should do during the due diligence phase of buying a property. The entire article is posted on our LinkedIn page: https://www.linkedin.com/pulse/buying-warehouse-building-8-invaluable-steps-due-edison-vasquez-ccim/
Steps include:
- Hire a Third Party to conduct Financial Audit
- Complete a property condition Assessment
- Do a market survey
- Audit Leases
- Complete Tittle search
- Conduct a site survey
- Do an environmental site survey
- Get an appraisal
On the industrial Tip, we discuss why by waiting for the "right deal" you might miss out on great opportunities.
Talk to you on the next episode. Leave us your feedback or questions. Thanks!
Thanks for following us. On this Episode we feature a presentation from our friend at West Renewables. They explain the detail Solar Systems Components for Commercial buildings. These include:
How Does Solar Works and
Why Use it?
Cash Flow, Tax Benefit, Solar System Depreciation, Energy Independence, Increased property values
How to Finance Solar Projects?
Energy Storage
Hope you find they episode helpful for your commercial building. Keep checking us on our website and social media. We'd love to hear your feedback. Talk to you in the next Episode.
What effect is Amazon having on the Industrial Real Estate industry. In this Episode we discussed how Amazon has ignited the demand for warehouse space worldwide. Not only caused by themselves but also by suppliers and competitors that have to take warehouse space to meet the customer demands.
Consider that Amazon didn't have a warehouse footprint in Miami 5 years ago and today they occupy over 1.5 million square feet. During this same time rents and sale prices have increased substantially.
On today's Industrial Tip, we talk about what landlord should do when a tenant leaves and get the space ready for the next tenant.
Thanks for listening! Please leave us any feedback!
Episode 3 of our Industrial Real Estate Podcast! We listen to our client so we put together a short episode of FAQ (Frequently Asked Questions) from Landlord and Tenants of Industrial Space.
We explain what's a gross and NNN lease, items needed to lease a warehouse space, how to deal with a new tenant that has no financial records.
Feel free to send us you questions and we'll give you some feedback and feature it on future episodes.
Check out our Industrial Tip: What to do if a Tenant needs time to get permits for his business? Hear an example of how we helped a landlord work with a tenant that needed to get permits after signing a lease agreement.
Thanks for listening! Please leave us any feedback.
Episode 2 of our Industrial Real Estate Podcast! In this episode, we go over the statistics for Miami's Industrial Real Estate Market during the 4Q 2018. Is it still as strong as ever or are we seeing a decline activity? We discuss the vacancy rate, lease absorption, lease rates, average sales prices. Plus, we run down over the largest leases and sales for the quarter.
What's next for 2019? Would Landlords and Sellers continue continue having advantage or would it be the turn for Tenants and Buyers?
Tune in to hear our Industrial Tip for this episode. Should I present and LOI or go straight to purchase contract? Listen to our suggestions for buyers of warehouse space in Miami.
Thanks for Listening! Please leave us any feedback.
First Episode to discuss the activity of the market for warehouse in Miami during the 3Q 2018. Discover how many square feet were leased and sold during this quarter. We'll go over how much space is bring built right now. Plus, a tip that can help landlords of warehouses when leasing a warehouse.