Industrial Insights

In this episode, Justin Smith interviews Michael Schulte of Intralog about setting up a warehouse and the role of brokers in the process. Intralog is a material handling systems integrator that brings data-driven design to customers who may not have access to it. They discuss network optimization, which involves using mathematical optimization to minimize costs and improve service levels in supply chain network design. They also explore the latest trends in warehouse design, including considerations for activity areas such as picking and value-added services. In this conversation, Justin Smith and Michael Schulte discuss the implementation and challenges of warehouse design and optimization. They cover topics such as the importance of communication, the role of data in designing storage solutions, the impact of supply chain network design, and the value of strategic equipment selection. They also touch on the influence of municipalities on warehouse design and the considerations involved in real estate negotiations. Overall, the conversation provides insights into the key factors and best practices for successful warehouse design and optimization.   Takeaways Setting up a warehouse requires careful consideration of factors such as customer demand, growth projections, and optimization of processes. Network optimization, using mathematical optimization, can help minimize costs and improve service levels in supply chain network design. Warehouse design involves determining the size of the footprint, considering activity areas such as picking and value-added services, and balancing time and space constraints. Brokers play a valuable role in matching theoretical design concepts to the reality of the market and helping customers make informed decisions. Effective communication is crucial in warehouse design and optimization projects. Accurate and clean data is essential for designing storage solutions. Strategic equipment selection can lead to cost savings and improved efficiency. Considerations such as fire codes and municipal regulations can impact warehouse design. Real estate negotiations require careful consideration of the investment in the facility and the potential for future growth. Episode Resources Connect with Michael Schulte https://www.linkedin.com/in/michaeldschulte/ https://intralog.io/  Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ jbsmith@leeirvine.com https://www.linkedin.com/in/justinbsmith  

At the most fundamental level, a change of ownership adds another party to the agreement that was not present during the initial negotiations. There are times when nothing changes except for the property manager and life goes on. However, a new landlord is usually a sign of change to come.

If you're an appraiser, tenant, or landlord involved in R&D industrial properties, this video is a must-watch! Unlock the insights that lead to successful appraisals and leasing experiences. Hit the play button now and subscribe to our channel for more industry expertise and advice.

For companies operating ten locations or more, efficient lease administration is essential to keep track of crucial dates, financial details, rights, responsibilities, reconciliations, and option dates. In this video, we explore how lease administration software, a part of the thriving property technology (PropTech) industry, can revolutionize the way you manage leases.

CAM (common area maintenance) reconciliations are a common practice in commercial real estate, but they can lead to surprising expenses for executives. In this eye-opening video, we shed light on the complexities of CAM reconciliations and how they can impact your bottom line.

Moving to a new place can be exciting, and we're here to help you make the most of it. In this video, we'll discuss the crucial steps you can take to enhance your experience and keep things running smoothly.

Moving machinery, equipment, and delicate lab materials require meticulous planning and preparation to ensure a seamless transition. In this informative video, we delve into the specific concerns and crucial steps you need to take when relocating such sensitive items.

Congratulations on successfully completing your move! As you settle into your new space, it's essential to address several crucial post-move housekeeping items to ensure a seamless transition. In this comprehensive video, we'll guide you through the necessary tasks to take care of after the move, so you can start fresh in your new surroundings.

Moving day can be a stressful and chaotic time, but with the right approach and organization, you can ensure a seamless transition to your new home. In this comprehensive guide, we reveal the key steps to orchestrate a successful move day and guarantee that everything goes according to plan.

As the big day approaches, it's essential to ensure every detail is well-organized to make the transition as smooth as possible. In this video, we'll cover crucial tasks you should focus on at the 30-day mark to ensure a successful move.

We'll discuss a comprehensive 60-day transition plan for businesses preparing to relocate their properties. Moving to a new location can be a complex process, and proper preparation is key to ensuring a seamless transition for both your employees and your operations.

In the process of transitioning to a new space, careful planning is crucial. Beginning 90 days before the move, considerations include securing machinery permits and certifications, bidding and selecting a suitable moving company, and addressing specialized needs for industrial equipment. Inventorying furniture, managing insurance paperwork, obtaining certificates of insurance for property access, and implementing security measures for the new space are also key components of a comprehensive plan.

We explore the essential considerations when upgrading older manufacturing buildings to meet modern distribution needs. In Southern California, a substantial portion of available properties were constructed during the sixties, seventies, and eighties, making it crucial to adapt these structures for distribution purposes effectively. Join us as we uncover the primary factors involved in converting manufacturing buildings to distribution facilities. The key determinants for a successful conversion include ceiling height, loading capabilities, and property orientation.

In this episode, Justin Smith brings in Greg Hanoian from United Material Handling to delve into the intricacies of material handling, timelines, and considerations for setting up warehouses. Joined by Chris Vassilian, they explore the basics of material handling and its growing importance in client conversations. The discussion covers essential considerations when setting up a new facility, from roof height and slab thickness to forklift configurations. Greg shares insights into the timeline for quoting and installing racking, the permitting process, and the challenges of relocating existing racking.    Highlights: Importance of integrating material handling into client conversations for a holistic understanding of their operations and finances. Factors influencing the timeline for quoting and installing racking, including roof height, slab thickness, and forklift considerations. Challenges and considerations when relocating existing racking, such as code changes, seismic issues, and the potential need for slab tests. Insight into the permitting process, lead times for steel, and the impact of high pile storage requirements. The significance of early involvement in the pre-con development stage and collaboration between material handling experts, brokers, and clients. The complexity of restoring a warehouse after removing racking and the potential downtime involved. Real-world scenarios highlighting the importance of communication and proactive problem-solving in the material handling process. Considerations when dealing with older buildings, including the lack of CAD files, seismic issues, and the need for core tests. Acknowledgment of the collaborative efforts between material handling professionals and industrial real estate experts in achieving successful outcomes for clients.   Episode Resources: Connect with Greg Hanoian https://www.linkedin.com/in/greg-hanoian-4b521110/  https://www.unitedmh.com/   Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ jbsmith@leeirvine.com https://www.linkedin.com/in/justinbsmith  

We explore the crucial advantages of conducting job walks with general contractors and how they contribute to the overall success and efficiency of construction projects. Gone are the days when contractors simply show up, give a bid, and the project begins. As projects scale up in size and complexity, job walks play a pivotal role in the construction process.

To succeed, it's essential to establish clear cost expectations from the outset. By fixing costs upfront, tenants and landlords can set the foundation for a successful construction journey. Learn about the critical role of good space planning and architect work in the early stages of a project. A pricing plan, combining architectural drawings and essential features with desirable add-ons, empowers tenants to evaluate contractors based on their ability to meet these requirements within the budget.

Justin Smith welcomes John Haber, Chief Strategy Officer at Transportation Insight Holding Company to discuss the intricate world of supply chain and logistics, shedding light on the challenges faced by executives in the e-commerce and shipping sectors. Drawing from his extensive experience, John shares insights into the evolving landscape, touching on issues such as inventory management, rising shipping costs, and the importance of risk management strategies. The conversation also delves into the often-overlooked nuances of dealing with major carriers like UPS and FedEx, highlighting contractual pitfalls and the need for careful navigation in a dynamic pricing environment.   Highlights: Background and Experience: John Haber's journey from corporate finance at UPS to founding a supply chain consulting business. Challenges in the Supply Chain: Insights into the challenges faced by executives, including inventory management, shipping costs, and risk management. UPS Perspective: Understanding the dynamics of UPS profitability and the shift towards helping shippers optimize their contracts. Industry Trends: The impact of global events like the COVID-19 pandemic on supply chain dynamics and the rise of reshoring. Top Challenges: Inventory management, rising shipping costs, and the importance of risk management and diversification strategies. Inflation and Cost Control: The influence of inflation on pricing within the supply chain and the emphasis on cost control in a slow sales year. Modal Optimization: Balancing different shipping modes based on inventory levels and analyzing cost implications. Network Optimization: The importance of selecting the right warehouse size and location based on inventory and shipping needs. Parcel Shipping: The complexity of outbound parcel shipping and the competition among carriers for last-mile delivery. Contractual Considerations: Cautionary advice on carefully reviewing carrier contracts to navigate penalty clauses, minimum commitments, and dynamic pricing. Dynamic Pricing: The shift towards dynamic pricing in carrier agreements and the challenges of staying updated. Continuous Management: Emphasizing the dynamic and continuous nature of supply chain management, requiring constant attention and adaptation.   Episode Resources: Connect with John Haber https://www.linkedin.com/in/john-haber/ https://www.transportationinsight.com/ Connect with Justin Smith https://smithcre.com/ https://www.lee-associates.com/ jbsmith@leeirvine.com https://www.linkedin.com/in/justinbsmith  

Justin Smith and Grant La Bounty delve into the complexities of consolidation in the industrial real estate market. They discuss the challenges businesses face when managing multiple locations, especially when dealing with different lease expiration dates and landlords. They explore potential win-win scenarios, shedding light on market dynamics and stressing the importance of effective communication in today's evolving economy. Key Points: Managing challenges in multiple industrial locations Diverse lease timelines and landlord dynamics Necessity of strategic space expansion Early engagement for operational efficiency Exploring win-win scenarios for tenants and landlords Insights into market dynamics and communication strategies.

Discover how cities' increasing understaffing and longer turnaround times have made permit approval a time-consuming challenge. However, there are actionable solutions to overcome these obstacles. One option is to invest in expedited turnaround times, which can fast-track your project. Alternatively, consider hiring a third-party expediter, someone well-versed in the city's processes, to ensure your application is review-ready and free from complications, saving you valuable time.

Private landlords tend to be cautious with their spending, holding onto cash until a tenant is secured. This can mean minimal upfront investment in preparing the space. On the other hand, institutional landlords take a proactive approach by investing in the space upfront, even without a confirmed tenant. This trend of increased institutionalization is beneficial for tenants, as it leads to more renovated and move-in-ready buildings in the market.

Join Justin and Grant as they discuss the current market and the rise of sublease space. 

Are you curious about the different conditions of office space found in industrial buildings? In this informative video, we delve into the implications of shell condition and fully renovated spaces. Join us as we explore the spectrum of office space conditions, from pristine Class A constructions to properties that have seen previous occupancy without renovations.

This year's So Cal industrial theme is negative net absorption and lease renewals. What does this mean in the marketplace? Lots of impasses in negotiation. Slower velocity. Deals are still getting done, though! Class A lease rates are holding on by a thread. Great credit is worth an 8-10% discount on rates for many projects. Class B landlords are doing their best to secure new deals and tenant renewals. Signing new tenants increasingly means going for a shorter term, like 3-4 years. A shorter term gives you occupancy, cash flow now, and the soonest mark-to-market opportunity possible when the market stabilizes. Tenants are increasingly trying to delay and decrease rates, of course. 1/2 of tenants are willing to let their property go to market to roll the dice on negotiating lower rates, while the other half talks a good game but still cannot risk their property going to market and the chance of having to move. Moving now is cash out of pocket today. A new higher rental rate is cash out of pocket month by month. Your business's cash flow position will usually dictate the answer to the question. It was fun to play host and have Grant La Bounty expand upon what tenants are experiencing and Chris Vassilian stepping into the shoes of the landlords.

Discover how to choose the right entities for lease contracts, whether you're a sole proprietor, startup, or corporation. CEOs and business owners, understand the importance of assessing whether the parent company or subsidiary should be on the lease. Financial complexities: Learn how corporate parents consolidate subsidiaries and the impact on lease agreements.

Join us as we delve into the complexities of tenant improvements and examine the essential factors tenants must carefully consider during lease negotiations to ensure their requirements are satisfactorily fulfilled.

Are you curious about the various lease contracts used in commercial real estate? Join us as we dive deep into the world of commercial lease agreements and uncover the advantages and disadvantages of two commonly employed contract types: fill-in-the-blank contracts and custom crafted contracts. In this video, we shed light on the importance of the drafting party's leverage, which allows them to establish the initial goalposts for all the essential terms in the contract.

Rent escalations or annual increases are common features in lease agreements, but have you ever wondered how these adjustments are determined? In this informative video, we delve into the factors that influence rent escalations and shed light on the market-based system that governs these decisions.

Considering lease renewal or relocation for your business? In this informative video, we explore the crucial factors you must evaluate before making a decision. Moving to a new building of the same size may seem tempting due to potential rent differentials, but is it truly cost-effective? Join us as we delve into the associated expenses and payback periods involved in relocation.

Lease types in the industrial market can be complex and bewildering. In this informative video, we provide a comprehensive overview of the main lease types encountered, such as gross, modified gross, and triple net leases. Discover the key differences between these lease structures and how they impact tenant responsibilities and expenses.

The age old question: Should you show the best property first or last?

We discuss if the property is worth the time and effort of both the broker and the client.

Whether it's in the world of real estate or any negotiation scenario, the power dynamic plays a crucial role. Discover how to identify who holds the leverage, who is in charge, and who possesses the ability to walk away. By gaining this clarity, you can set realistic expectations and gauge whether you are needed or if the other party requires your presence.

Join us as we take you behind the scenes and explore the world of off-market opportunities. We'll share the untapped techniques that go beyond the usual property listings. Discover how brokers dive into the hidden realm of off-market properties, unveiling gems that most people overlook.

Uncover the hidden details within lease contracts, such as the window of opportunity for exercising your option. Discover the typical timeframes, ranging from six to nine months or nine to 12 months, where written notice can be given. Dive deeper into the negotiation process, exploring the concepts of fair market rent and pre-negotiated terms. But what if negotiations turn sour? Unveil the intriguing mechanism of arbitration, a rare gem hidden within lease options. Explore the fascinating concept of baseball arbitration, where both landlord and tenant propose their desired fair market value.

Discover the key steps you must consider, with building a remarkable team topping the list. But wait, there's more! Find out about the crucial mindset required to effectively manage project timelines—flexibility.

Discover the ultimate secret to successfully managing multiple vendors with conflicting interests during a project! In this captivating video, you'll uncover the game-changing strategy of having a designated "quarterback" to orchestrate the entire process. This quarterback, whether it's a specialized architect, an integrator, or a versatile project manager, holds the fundamental understanding of the specific component being developed.

We explore the crucial roles of external employees, consultants, and vendors in shaping the success of a project. Drawing from real-life examples, we discuss the collaboration between asset managers, leasing brokers, contractors, and architects in achieving project goals. Additionally, we delve into the effective management of multiple competing vendors through competitive bidding and the importance of clarity and transparency in the process. Join us as we uncover the key factors that contribute to project success and offer insights for successful project implementation.

Discover the essential qualities that business owners should seek when hiring a broker. In this informative video, we explore the importance of finding the right fit for your assignment, personality, and team. Learn how factors like property size, location, and operational type come into play. Additionally, delve into the significance of a broker's marketing strategy, often overlooked in interviews. Uncover the key elements that make a broker stand out, such as their ability to effectively market your property and connect with potential tenants. Gain insights into assessing industry trends, lease expirations, and targeted outreach to executives. Don't miss out on this valuable advice for distinguishing between good brokers and exceptional ones.

We delve into a crucial aspect often overlooked in building selection: power requirements. Join us as we explore the significance of power and its impact on leasing decisions for commercial spaces. Our experienced industry professional sheds light on the complexities surrounding power needs, debunking common misconceptions and providing valuable insights. Discover why power is vital for various operations, especially in sectors like manufacturing, aerospace, automotive, and life sciences. Learn how monitoring usage and draw can optimize power efficiency and facilitate informed decision-making. Uncover the challenges associated with estimating power needs and the importance of detailed analysis in determining the actual load requirements. Moreover, gain a deeper understanding of the expensive nature of power upgrades, involving public utilities and intricate infrastructure considerations. Join us as we unravel the intricacies of power requirements in building leasing and highlight the significance of assembling the right team for success in the industry. Highlights  Introduction to Power Requirements  Common Misunderstandings What is Power Used For? Price of Power  How to Bring in Power

We explore the common mistakes companies make when assessing office space and how to effectively remedy them. Join us as we discuss the challenges of misjudging space requirements and the consequences of having too much or too little office space within industrial properties. Discover real-life experiences and learn about potential solutions, including subleasing excess space and adapting to changing business needs. We also touch upon the evolving trends in office space utilization, considering the impact of remote work and the importance of fostering a flexible workplace culture. Gain valuable insights into making informed facility decisions and building a future-proof workspace. Don't miss this engaging discussion on optimizing office layouts for industrial businesses.  Second Story Office Space - 0:55 New Era of Office Space - 2:30

We explore how the layout of different buildings can impact the functionality and efficiency of a company's operations. Join us as we delve into the factors that businesses should consider when deciding whether to stay in their current building or move to a new one.  We emphasize the importance of understanding future needs and envisioning the ideal workspace. By taking inventory of the existing space and analyzing each component piece, businesses can create a checklist of the most important aspects for their operations. From the total size of the building to the layout of offices, we discuss how each element contributes to the overall productivity and culture of a company. We also highlight the diverse requirements of different industries, such as the need for laboratory space, research and development areas, or testing facilities. These considerations play a crucial role in filtering the available building options and ensuring that the workspace aligns with specific industry needs. Join us for valuable insights into building layout and design, as well as practical tips for optimizing your company's operations in line with your workspace. Don't miss this opportunity to enhance your understanding of how the right building layout can positively impact your business.   Components in Moving - 0:40 Taking Inventory - 1:06 Examining Total Size - 2:29 Office Space - 2:50 Furniture System - 4:00 Work Stations - 4:40 Accommodate Office Culture - 5:09

We delve into the common financing challenges that businesses often encounter. Whether you're a business owner or a tenant considering a property transition, understanding these challenges is crucial. Join us as we explore strategies and options to mitigate these obstacles when selling an owned property and purchasing a new one. By taking a moment to assess both the physical condition of the property and the financing considerations early on, you can avoid hurdles halfway through the process of finding your ideal building. We'll emphasize the importance of scenario planning, a powerful tool that allows business owners and executives to envision multiple alternatives, such as leasing or purchasing different space capacities. This planning method helps you compare cash outlays, setup costs, down payments, and long-term investment implications. Join us in this video as we navigate the intricacies of financing challenges faced by businesses and discover effective strategies and options to overcome them. By thinking strategically and proactively, you can make informed decisions that set your business on a successful path for years to come.  Maintenance Improvements - 1:00 Impact of Bank Loans - 2:00 Scenario Planning - 3:00

In this informative video, we delve into the prevalent practice of subleasing in the warehouse leasing business. Discover why subleasing is widely adopted and the types of groups or entities that actively seek out subleasing properties. We explore the dynamics of subleasing contracts, the challenges involved, and the importance of understanding the complexities it brings. Additionally, we discuss the increased significance of subleases in the post-COVID era and how they facilitate business transitions and short-term growth strategies. Join us as we shed light on the duration, costs, and flexibility associated with subleasing agreements. Stay informed about the evolving landscape of warehouse leasing and make better decisions for your business. Subscribe now for more insightful content on the commercial real estate industry! Classic Sublease - 1:16 Introduction to Three Parties - 1:40 Shifting World of Subleases - 2:43 Length of Subleases - 4:30 Lease Terminations - 7:00

In this thought-provoking video, we explore the powerful concept of "Always Be the buyer" and its application to lease renewal negotiations. Learn how this mindset framing technique, derived from Strategic Coach, can transform your approach as a tenant. Discover the advantages of shifting from a seller's validation-seeking position to a buyer's empowered position. By adopting the buyer's mindset, you gain access to a wide range of options and leverage during lease negotiations.Unlock the true potential of lease renewal negotiations by watching this video. Embrace the buyer's mindset and witness the transformation in your ability to secure the best lease terms and maximize the value of your tenancy. Don't miss out on this opportunity to gain a competitive edge in the commercial real estate market. Subscribe now to our channel for more insightful content on lease negotiations and tenant empowerment.  Always Be The Buyer Flipping the Script - 00:25 Creating Leverage - 1:30 Creating Alternatives - 2:30