Ontario Industrial Real Estate FAQ!
We want to make sure that your questions are being answered and that the real industry and local issues are being addressed in the order they need to be.
Q. What type of industrial space exists in Ontario?
A. Ontario is a collective term for the city of Ontario residing within Inland Empire (Riverside) and Industrial is a collective term for real estate types that include distribution space for import / export, product storage and logistics, manufacturing for food processing / cold storage, assembly and heavy production with adequate power and features, and flex space for high tech / R & D space that includes a higher percentage of office square footage to warehouse floor space. Finally, there also exists raw land, zoned industrial, for purchase that a buyer can build a custom facility to meet the exact needs of the company.
Q. What is the process to lease warehouse space?
A. The process to lease commercial space takes 2 to 3 weeks at minimum to complete and includes an initial list of available buildings, touring the selected buildings, negotiating terms to lease, and the preparation and execution of the contract. We recommend that you dedicate a tenant / buyer representative firm to handle your interests and one that will be responsible to move the process forward.
Q. What is the benefit of having a tenant / buyer representative?
A. A Tenant / Buyer representative can provide you with advice and expertise to meet your current and future space needs within your budget. A tenant representative firm will point out the good and the bad of any building and negotiate away clauses and terms that impair your business goals. By responding quickly to your questions and fully utilizing a strong network of the landlords and the brokerage community, a tenant representative firm will provide reliable advice on available spaces in the market to maximize efficiencies and negotiate a lease that meets your economic needs.
Q. What is the difference between a net lease and a gross lease?
A. Net leases and gross leases can be compared, apples to apples, by taking the net base rent and adding on top of that the triple net expenses (taxes, maintenance, and insurance) related to the premises portion of the project. By adding base rent and net charges together, you can build the equivalent All in rate, which is equal to or a close reflection of a gross rent basis. Vice-versa, you can subtract net charges from gross rent to determine a net base rent.
Q. What is the benefit of having a tenant / buyer representative?
A. A Tenant / Buyer representative can provide you with advice and expertise to meet your current and future space needs within your budget. A tenant representative firm will point out the good and the bad of any building and negotiate away clauses and terms that impair your business goals. By responding quickly to your questions and fully utilizing a strong network of the landlords and the brokerage community, a tenant representative firm will provide reliable advice on available spaces in the market to maximize efficiencies and negotiate a lease that meets your economic needs.
Q. What does it cost to work with a tenant / buyer representative firm?
A. The cost to work with a Tenant / Buyer representative should be free to you, do to the fact that commissions are paid for by the Landlord / Seller. Based on the close relation of working with a broker, tenant representative brokerage firm will ask for a commitment letter to solely represent your interests in locating and negotiating space.
Q. How long of a lease should I sign?
A. The length of a lease depends on where you see yourself in the next three, five and up to ten years. In general, there are leases signed for as little as one year and as long as ten years. If you see yourself growing in the next few years, we would recommend a shorter term lease. If your company has reached a stabilized point, we would recommend a longer term lease to lock in rates or purchasing. No matter how long of a term, our team always negotiates for fixed increases over the term of your lease to help your company plan fixed cost expenses.
Q. What is the process of valuing an industrial property for sale?
A. Our team can provide you with a Broker’s Opinion of Value (BOV) of your property for sale in just a few days time at no charge. This effort includes a walk-through assessment of your warehouse space or commercial property, preparation of a list of comparable (comps) buildings in the area that are currently available, or have recently leased or sold. In addition, a current market data report will provide you with current market trends affecting leasing or selling and examples of concessions and incentives that are standard in the market. All BOVs include adjustments based on local market factors, special features or amenities that will increase or decrease the value of the property to the highest and best user of the building.
