Shows
Industrial InsightsTrends in Subleasing with Chris VassilianChris Vassilian and Justin Smith discuss the evolving landscape of subleasing in Southern California, highlighting current trends, challenges, and the dynamics between landlords, tenants, and subtenants. They explore the implications of market fluctuations, the importance of financial credit, and the complexities of navigating direct leases versus subleases. Key Takeaways Subleasing is increasingly common in Southern California. Market fluctuations have created a unique subleasing environment. Subleases often offer flexibility but may lack concessions. Racking can enhance the attractiveness of a sublease. Landlords may have the right to recapture subleased space. Financial credit of the sublessor i...
2024-10-2508 min
Industrial InsightsThe Future of Leasing Strategies with Chris VassilianIn this podcast episode, Chris and Justin discuss various aspects of supply chain logistics, focusing on the concept of blend and extend leases. They explore the reasons behind this leasing strategy, the importance of landlord contributions to building improvements, and strategies for landlords to attract tenants to vacant properties. The conversation highlights the current market dynamics and the need for flexibility in leasing agreements. Key Takeaways The busiest airport for freight in the US is Memphis. Blend and extend leases are becoming more common in today's market. Landlords may need to contribute to building i...
2024-09-2708 min
Industrial InsightsEnsuring Lease Alignment with Tenant Use with Chris VassilianIn this conversation, Justin and Chris discuss lease reviews and common issues that arise during the process. They highlight the importance of understanding tenant obligations, hold-over clauses, and the responsibility for maintenance and repairs. They also discuss the significance of aligning the lease with the tenant's intended use of the space and negotiating clauses related to relocation and environmental concerns. The conversation concludes with a mention of the benefits of training with an expert in lease contracts and a recommendation for a lease negotiation manual. Key Takeaways Understanding tenant obligations is crucial when reviewing a...
2024-09-1309 min
Industrial InsightsUnderstanding Rental Rates and Market Conditions with Chris VassilianIn this episode of Industrial Insights, Chris Vasilian discusses tenant representation frequently asked questions. The two main topics covered are the need for office space with a small warehouse component and the decision between lease renewals and relocations. Chris explains the different options for combining office and warehouse space and the considerations for each. He also discusses the factors that influence the decision between renewing a lease or relocating, including cost savings, space optimization, and market conditions. The conversation also touches on topics such as rental rates, free rent concessions, and negotiating operating expenses. Key T...
2024-08-2414 min
Industrial InsightsFull Client Service Support for Chinese 3PLs with Chris VassilianChinese 3PLs are increasingly leasing space in the Inland Empire, Orange County, and LA County due to the growth of manufacturing in China and the need for storage and distribution in the US. Despite initial concerns about the financial stability of these companies, many have honored their commitments and even received security deposit refunds. Landlords have become more flexible in underwriting credit for these tenants. Tenant representation for Chinese 3PLs often involves providing full client service support and coordinating with various vendors for services such as office design, security, IT, and signage. The language barrier and time zone difference...
2024-08-1408 min
Industrial InsightsMastering Material Handling Dynamics in Industrial Real EstateIn 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 in...
2023-11-1721 min
Industrial InsightsNegative Net Absorption and Lease RenewalsThis 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...
2023-10-1911 min