When a Houston-based industrial client, occupying an 80,000 square-foot distribution facility, needed more space for their Colorado operations, they knew the guidance of an experienced, local tenant representative would be important. Not only would they need to sell their current industrial property, but also simultaneously identify a new warehouse in a tight market, negotiate the terms of the lease, and relocate to a new, larger facility. They engaged CCIM-designated broker, Lowrey Burnett, to help them navigate the process.
Upon outgrowing their distribution facility, the client engaged Lowrey Burnett to act as their representative for both the disposition of their current facility and the procurement of a larger lease space. In order to prevent any disruption to critical logistical operations, they needed Burnett’s expertise to seamlessly execute both transactions. Despite the challenges he faced, Burnett was prepared to navigate a complex set of circumstances under a timeline that supported the end goals of the business.
The client was operating a large logistics, transportation, and packaging business so coordinating a sale and subsequent relocation that supported the client’s ability to honor all existing contracts was paramount to the success of this transaction. Unfortunately for tenants at that time, vacancy in the client’s desired submarket was at historic lows of less than 5%. In addition, asking rental rates were on the rise and the client’s budget demanded a below-market rental rate. The client required an industrial property with ESFR sprinkler system, front park-rear loading dock, and an upgraded, energy efficient lighting system. Availability of affordable property with the necessary features posed a difficulty in the search for acceptable replacement properties, but Burnett was not deterred. He identified a Class A 200,000 square-foot industrial property in the client’s desired geographic area. The next step was to negotiate a staged ‘take-down’ of the property that included the first 100,000 square feet, followed by an additional 50,000 square-feet in five months, and the final 50,000 square-feet five months after that. These negotiations were all in advance of and contingent upon the sale of client’s current property.
The client successfully closed on the sale of their current facility, a transaction in which Burnett acted as the seller’s representative for the client, and made a smooth relocation to the new property, including each stage of the additional lease space take-down.
Lowrey Burnett, CCIM-designated tenant representative, successfully identified and negotiated the terms of a 200,000 square-foot take down, facilitating a smooth transition of operations. If you have outgrown your current space and need to renegotiate your lease terms or identify a new location for your warehouse operations, contact the tenant representative at Fountainhead Commercial today.