Some very basic questions

[Tyler Parker]

I have been a residential real estate broker for a while and am starting to get into commercial a little bit. I realize this is where the money is, if you can be successful. I also graduated college with a degree in real estate, in which, the entire curriculum was geared towards commercial real estate. So, excuse my very basic questions. 

I am looking for a warehouse space for a client right now. One of the requirements is 22' ceiling height clearance. Most of the listings are well below that. I also read that the definition of ceiling height clearance is the minimum height clearance in any one spot. Does that mean that when a listing says 18', that most of the space could be 22'+ and just one part of the warehouse is 18'? How do I know without going to every building and measuring? Any advice on this would be great. 

Also, they are leasing the space. What basic tips could you give me with regards to making sure my client gets everything they deserve.... in other words, I don't need them knowing that I am green in this area of real estate. I want to make sure I am taking care of them as much as a veteran would be. It is very important to me that all my clients are happy with my service. 

[Justin Wells]

Most roofs on industrial buildings may appear flat from ground level. This is because most have a parapet that extends beyond the height of the roof. Once inside, you can tell that the roof slopes from higher to lower so that rain water will run off toward the drain on the low side. Usually the variance in height is no more than 1-2 feet, unless you are talking about a very large building that is an odd shape. So, as brokers, we are supposed to list the "clear height" as being the absolute lowest point (bottom of the beam for wood beam roofs). In my MLS, you can list a range, say 18' to 20' so buyers/lessees know that there is a section on the inside that is taller.

My advice to you would be to find buildings that are 20' clear height first and then contact those brokers to see if the clear height is in fact higher in parts. It's also important to identify exactly why your client needs 22' clear height. It may just be an arbitrary want rather than an actual need. If this is the case, they may settle for an 18' to 20' clear building if they really like the space. Other companies have 20'+ tall machines or products that cannot be stored unless their is enough clearance and thus cannot settle for anything less.

Get to know your client's business and have a working knowledge of what they do and how they operate. Most brokers representing Industrial property owners are going to ask what your client does so they can make sure that use is allowed in accordance with the owners preferences and more importantly the zoning code for the building. Be sure to check the local codes in the city you are looking to see if they have laws regarding how high a product can be stacked both with and without metal shelving.

You may want to consider working this deal with a more experienced salesperson at least for this client. If you go it alone, everything may work out fine, but if something goes wrong or your client is not happy, you may not know how to respond or rectify the situation. Splitting a commission with someone may suck, but it certainly sucks worse to lose a deal entirely and never fully get a complete understanding of the process. Make a little money now and gain that valuable experience. We all learn from someone and all started somewhere. Having someone on your team that actively works with Industrial clients will pay huge dividends for you in the future, whether you decide to work commercial brokerage full time or not!