Direction on rates for Industrial warehouse with office renewal?
Any brokers or owners who can give me a little guidance here? Have a client I am working with (I am a former office broker turned real estate atty, darkside I know) who insists on having me research as to whether he is getting screwed on rate. Deal is a renewal of his existing space to the tune of about 75k SF, 15k of which is office. The property is 70's construction and while electrical and such have been updated, windows, office space, and that kind of thing are pretty dated. Quoted at $5/sf NNN for the whole thing without a difference in the office and warehouse space. Looking at a ten year term with 3.5% annual bumps. The big question I have is what would be standard in terms of TI or other concessions? Kind of flying blind in terms of my knowledge base. Any help is appreciated!
[{"id": "g5j015t", "text": "Really depends on a lot of factors. I would contact a broker you trust to advise on this", "replies": [], "depth": 1}, {"id": "g5j0vu7", "text": "It is so market dependent. I would make some calls to your favorite market brokers and make new connections. I am sure some brokers would love to have an attorney in their network.", "replies": [{"id": "g5j49kc", "text": "Ya I have a couple of calls in, so we shall see what shakes out. I\u2019m somewhat jaded as I was an M&amp;M guy so I\u2019m used to no one doing anything for you unless they can get themselves in the deal lol.", "replies": [{"id": "g5jcunv", "text": "Well, you\u2019ll have to bring value by becoming a resource for them. But that\u2019s how you get business.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "g5jc5kv", "text": "Flex is way too market dependent. However If it's in bum fuck usa, $5 nnn is too high", "replies": [{"id": "g5jca3g", "text": "Nah, North Tx. Rent is market though of course landlord claims it\u2019s wayyyyy under", "replies": [{"id": "g5l7ttq", "text": "Like Dallas MSA?", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "g5jhe5c", "text": "Ive heard of $4.oo SF NNN being the norm around DFW.... regarding TI I think it's all deal dependent. Like others have commented, it all depends. Does your tenant have national credit or are they local operators. DM more if you would like to talk more. I am an industrial broker in Denver but deep ties to DFW.", "replies": [], "depth": 1}, {"id": "g5lkwwl", "text": "If an industrial tenant rep is out of the question how about checking with some local commercial appraisers for market lease comps? Do you know anyone with CoStar access?", "replies": [], "depth": 1}, {"id": "g5nwkju", "text": "How much is cam?", "replies": [], "depth": 1}, {"id": "g6aux9y", "text": "Send me a message. Dallas industrial broker here.", "replies": [], "depth": 1}]