All Forum Posts by: Jennie Kesselman

Im working with a client who has a very large industrial building and wants to rent out a portion. However, he also has overhead cranes, mobile cranes, and equipment for welding, and moving of heavy equipment.

Essentially, he has found himself in a niche where local businesses reach out for storage of large heavy items for a period of time, and he unloads/ reloads, delivers and often installs them. For example, a local HVAC company who needs somewhere to store roof top systems for jobs and then needs them delivered and installed. OR a national crane company that delivers and stores cranes, and then he reloads them, delivers and builds them onsite.

The companies like to deliver their products asap to get paid and they are often stored at his facility for several months before he takes them to their final destination.

My client loves this model and wants me to procure more companies who lease from him in this same way.

It is an extremely interesting concept-

An industrial storage facility, that is truly 'full service' (helps with the unload, reload delivery and install when and if desired).

We are brainstorming a structure where businesses pay a minimum monthly rental fee per square foot, just as one would with a self storage facility, and then there is a contracted rate for additional services provided as they decide to use them (the delivery, install, unload etc)

Have you ever heard of anything like this? Id love to hear if so, and even if not would welcome any thoughts and points to consider.

thank you so much in advance!

Jennie

@Ryan Breen Great skills to have Ryan. Keep us posted how the kitchen and home comes out!

How exciting Heather, congrats to you both on your home purchase! Funny it is literally today.

It sounds like you found a workable situation and that is the biggest thing- taking the first step so take a moment and feel great about that. 

Regarding the updates, kitchen is HUGE!!! Also, believe it or not your front door/entry way is one of the largest items that will give you huge return on your dollar invested for what it offers in curb appeal.

@Ryan Breen certainly all of the detail-oriented updates that bring the home up to the times will attract a wider pool of clients because the reality is most people do not have the time or skills to modernize a home. Sounds like you're doing some great work.

And of course, any renovations that create for a house hack situation are going to increase value because of revenue generation.

Welcome to Connecticut @Mayne .Williams !

Hi Heather!

Have you considered house hacking a single family at first? This tactic may give you more options and allow you to ease into multifamily if you are finding the pricing and availability tricky at present. Whether it's an in-law suite, or separate detached converted space on your property- house hacking a single family residence is a great way to step into multifamily. It also has the potential to increase the value of the property you've chosen because of the income it now generates. Just be sure to check the local zoning. Good luck!

Thank you. This information is so very helpful and confirms the range I was intending to set my commission at. The ‘industrial’ segment  of commercial properties is newer for me, and I wanted to ensure I was being fair.

Thank you again !

@cason acor  It is a 50,000 square foot building, on almost 8 acres. Not sure yet if the full facility will be leased, or if it is going to be a portion. 

Any chance you are comfortable throwing out a number on the percentage of full lease paid over the entire term? I realize there is a range, but am trying to discern what is most common and fair per industry standard.

Hi :)

I am a Realtor and have been asked to assist a client with leasing out his large Industrial facility. Id love to hear from you...

what is the most common/ best way to structure agent commission for procuring a tenant in an industrial facility?

Thanks in advance!

Jennie

I second @mack benson - if the numbers work and you are willing to hold long term it is absolutely worth trying to get behind.  I can't speak for your local market but if it is anything like where Im at in the Northeast, procuring a property well below value may be challenging and there's something to be said for lost time cost. 

The number one quality I look for is that they make me feel HEARD.  They do this by providing relevant content and offering solutions to my concerns to show they understand my goals. If they're doing this, I am highly likely to return to them with my business every time.