A Taller Building Could Save You Money

Yesterday Richard Schwartz and I met with a large 3PL to discuss helping them consolidate. This company is currently in two buildings totalling about 650,000 square feet. These are older buildings that are only 24' clear. Their hope is to consolidate their operation into one  450,000 - 500,000 square foot, 30' clear building. As we all know, you pay for industrial property by the square foot, not the cubic foot. A 30' clear building could allow you rack 1 pallet position higher, thereby taking advantage of the cubic space that a building offers. Many times a 30' clear building will go for the same rate as a 24' clear building. For some it makes perfect sense. In this instance this company may be able to reduce their overall square footage by as much as 150,000 square feet, but still be able to maintain about the same amount of pallet positions. Let's say that 150,000 square feet is worth $.30 per square foot. That is a monthly savings of $45,000 or a savings of $2,700,000 over five years!

If you would like to do a cost analysis of your low clear building versus a taller building just let me know!

Mitch 909-974-4054

Networking with a 3PL

Today I received a call from Don Armstrong, the Director of Marketing for Third Party Logistics (3PL) providor NAL Syncreon. NAL is based out of Chicago, IL but maintains a +/- 155,000 square foot facility in Fontana, CA Like a lot of us right now NAL's business is down a little and about half of their Fontana facility is sitting empty. Knowing that sometimes a broker like myself might come across a company that prefers to distribute via a 3PL as opposed to doing it themselves Don gave me a call. Our conversation really made me think. For some companies a 3PL could really be the way to go, allowing you to focus more attention on designing, marketing and producing your product and less time being a shipping and distribution company. 3PL rates depend a lot on how many different times they have to handle your product but most will custom tailor a program specifically for you. If you're interested in speaking with Don contact me for his information.

Two New Transactions to Report

Last week I completed two different transactions.
The first, which is the top building shown on the right was a 10,000 square foot lease deal in Ontario. I represented the tenant, Mark Robinson of Performance Water Jet, Inc. Mark responded to one of my e-mail blasts and got an absolutely smoking deal on this property. Special thanks to Stefan Smith of Dale Fowler Real Estate who represented the Owner.

The second deal was a 8,750 square foot sale deal in San Jacinto. This property was a formal equipment rental yard and featured 4 roll up doors, a wash bay and a 2.2 acre fenced yard. This property was a Citibank foreclosure. Buyer Dale Dondel is a local off road race car builder. My partner Bob Griffith and I represented Citibank while I also represented the buyer.

Call me for the comp on either of these deals at 909-974-4054

Back From Vacation

Yes, I took a vacation. I really don't take many. Usually I just take a Friday off to make a long weekend. But this time I took a few extra days, and you know what? It was really nice. I didn't go anywhere fancy, just camping at Lake Buena Vista out near Bakersfield. Going to Buena Vista on Mother's Day weekend has been a family tradition of my wife's for years and it has now become a tradition for my family as well. Taking a little break from work to spend quality time with your family and friends can really help you put your life and priorities in perspective if you let it. After all, what are you working for? What motivates you and inspires you to do better, or to be a better person or to accomplish a goal that you have set? For me, it is my family. Nothing makes me happier than knowing that they are happy and well taken care of.

So the next time you have the opportunity to take an extra day or two off to be with the ones you love, I say do it! They will love you for it, and work can wait!

The Other Inland Empire

It turns out there is another Inland Empire. I found it on google just like I find most everything it seems. This one is up near Spokane, WA I found a couple of companies up there and added them to my e-mail list. Last October one of them responded to a quarterly market report that I had sent out. They asked if I had one for the Seattle market as they were thinking of expanding there. The company I work for, Grubb & Ellis has over 100 offices nationwide. Reports on almost every major market in the country are available on our company website http://www.grubb-ellis.com/  Today, that company contacted me again saying they were starting to look in the Seattle area for 50,000 - 100,000 square feet. I went to my Manager Dave Burback who knew right who to call in Seattle and before you know it I was sending out a great referral.

Hot Deal and a Hot Comp

In my post below I mention a lease on a 10,000 square foot building in Ontario that I am doing that starts at only $.35 per square foot gross. Well, there is a 15,000 square foot building in this complex that I think the owner would do the same deal on. Here are the terms I just negotiated on the 10,000: Three year term. Two months free rent up front. Year one $.35 gross. Year two $.37 gross. Year 3 $.39 gross. Three year option to renew with only $.01 psf increases. This is a nice tilt up building in Ontario with a yard. Call me at 909-974-4054 for more details.

This will give you an idea of how cheap properties out in the eastern Inland Empire are going for.
420 Harley Knox Blvd. Perris
84,201 square feet.
Sold for $45.00 per square foot!

This building was being marketed for sale at $65.00 per square foot. Just goes to show that sometimes making that low ball offer can pay off.

This is a +/- five year old concrete tilt up building!