LEASE AN INDUSTRIAL BUILDING
Asking Base Lease Rates and Vacancy Rates for all
categories of industrial space in the major Las Vegas
submarkets
|
Submarket |
Square Feet |
Vacancy |
Average Asking Base Rent / Month NNN |
|
Airport |
13,210,648
sq ft |
4.7% |
$.91 |
| East Las Vegas |
2,826,024
sq ft |
3.5% |
$.65 |
| West
Central |
12,076,127
sq ft |
2.7% |
$.83 |
| Henderson |
11,129,302
sq ft |
10.2% |
$.50 |
| North Las Vegas |
29,493,141
sq ft |
7.3% |
$.54 |
| Northwest |
1,262,428
sq ft |
18.9% |
$.85 |
| Southwest |
29,403,519
sq ft |
6.0% |
$.75 |
| Total Market |
99,401,189
sq ft |
6.4% |
$.66 |
Source for lease and
vacancy rates: Restrepo
Consulting Group's Q4 2007 Las Vegas Industrial Market Report. Contact Restrepo Consulting Group at www.rcg1.com.
Tenant Broker: Lease Process - General Outline
Building Requirements: Tenant must communicate a description of
Tenant's requirements to Tenant's Broker:
Total square feet, office space and layout, rent budget, occupancy date,
clear height, power, natural gas, loading docks, fire sprinklers, yard space for
outside storage, number of employees for parking requirements, description
of trucks making deliveries, bandwidth, description of activity to be conducted
in the warehouse for zoning regulations, freeway access, and any other building
requirements.
Survey the Industrial submarkets: Tenant and Tenant's Broker will
drive the Las Vegas industrial submarkets and decide which submarket would best
suit the Tenant.
Site Tours: Tenant's Broker will set up appointments with Landlord Brokers to walk through various buildings in the chosen
submarket. Decide on the best building to lease.
Tenant's Letter of Intent to Lease Space: Tenant's Broker will
draft a Letter of Intent based on current rental market conditions that will include:
Property Address, Base Rent, Rental Adjustments, Advance Deposits, Lease Term,
Lease Options, Tenant Improvements including a rough floor plan of reconfigured
office space, Landlord Concessions, the nature of the business to be conducted
on the premises, Zoning, Hours of Access, and Credit Worthiness of Tenant.
Check with the zoning department and be certain the use is allowed. Is a "use
permit" required?
Landlord's Response to Tenant's Letter of Intent: Landlord's Broker will draw Landlord's response to Tenant's
Letter of Intent.
Negotiation: In order to achieve the best lease terms, Tenant should
be prepared to convince the Landlord of Tenant's financial strength.
Landlord may require any combination of the following: A personal
credit report, a Company D&B Report, 2 years Financial Statements, 2 years Tax
Returns, Landlord References, Bank References or Trade References.
Draft Lease: Pay special attention to the Tenant Improvement Work
Letter, a document in the Lease setting forth the terms upon which the Tenant
Improvements will be built. What is the amount of the Tenant Improvement
Allowance? What exactly will be built-out? Who will hire the architect? What
will the build-out cost? Who will contract for and assume responsibility for the
work? Who will pay for the build-out? Who will pay for cost overruns? How will
"change orders" be handled? When will the work be completed? What will happen if
the work is not completed on time?
Negotiation: Tenant/Tenant's Broker and Landlord/Landlord's Broker will
negotiate the terms and language of the Draft Lease.
Final Lease: Landlord's Broker will generate the Final Lease
for execution by both Parties.
New Business Set Up: See the Las Vegas New Business Set Up link on the
Navigation Bar. Tenant should test all systems as soon as possible after
he takes possession. All building systems are generally guaranteed to
operate properly upon delivery of premises to Tenant.
During the Lease Process, if requested, Tenant's Broker can recommend:
- Architects specializing in Tenant Improvement design
- Contractors specializing in construction of Tenant Improvements
- Real Estate Attorneys for Lease document analysis and review
-
Phone numbers and web sites for Business Licensing in the various
jurisdictions, State of Nevada Dept of Taxation for Tax ID #,
Secretary of State for Incorporation, Service start-up numbers at the
various Public Utilities, Commercial Insurance Agents.
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