91视频

Many users of industrial space have delayed making long-term decisions about their space needs amid the economic uncertainty of the past few years. However, companies these days are generally feeling more confident about their future. Many brokers believe now is a perfect time for tenants to assess their commercial real estate situation and rightsize because they can obtain flexibility and options in negotiations.

Nationally, the manufacturing industry has seen strong improvement in recent months. Manufacturing production rose 0.7 percent in January, and December showed the fastest growth in orders in five years. Portland鈥檚 industrial market is beginning to reflect this positive trend, with vacancy falling in many submarkets and absorption increasing.

A few submarkets have shown considerable improvement. Tualatin has shown strong growth and an approximate 4 percent vacancy rate, and very few available spaces greater than 25,000 square feet.

Northwest Portland has also stabilized, and with lease rates escalating and absorption trending positively, a clear shift in negotiating leverage from tenants to landlords has begun. The Rivergate and Airport Way areas in North/Northeast Portland are improving as well. The lack of development in the past few years has limited supply, and we鈥檝e seen positive absorption, steady lease rates and landlords sensing a resurgence in activity and demand.

However, some submarkets are still feeling the lingering impact of the recession. Wilsonville, which formerly was the darling of the industrial market because of its proximity to I-5, has continued to struggle. Users have choices of large spaces in the former Nike facility and old Hollywood Video and G.I. Joe鈥檚 warehouses, and Wilsonville Distribution Center. Spaces from 40,000 to 400,000 square feet are available, and are in some of the best locations in the metro area from a transportation standpoint.

While the economy was poor, many industrial space users downsized, subleased space or took a 鈥渨ait and see鈥� approach to see where the economy was going before making any significant decisions. Now that they have weathered the downturn, they can assess their commercial real estate position.

Tenants should contact a commercial real estate broker 鈥� especially one with a respected industry designation such as CCIM or SIOR 鈥� who can help them with analysis to reduce occupancy costs and overhead and create efficiencies, or rightsize.

So, how does one rightsize? A good first step is to assess space needs. Hire a good broker who will take you through the marketplace in an effort to ascertain whether current space is at a market rate, comparing it to the competition and like kind spaces. This approach allows tenants to assess all options, making informed decisions based on economics and market conditions.

Many companies want the flexibility to expand, and they tend to over-commit to leasing additional space to meet expected future growth. But this approach can have serious consequences, as we saw during the recession. Companies had expected and planned for an upward swing in business, but many had to try to sublease extra space or terminate leases.

A quality broker will advise tenants to use existing facilities as long as they can until they are bursting at the seams. Though it can be tough, they should weather growing pains until they absolutely must commit to higher occupancy costs. It鈥檚 a safe, prudent approach to expansion.

Some tenants need additional space. One cautious approach is to secure more space in an existing facility on a month-to-month basis. Industrial orders are still volatile, and inventory management can change dramatically from one month to the next, so this is a smart approach for businesses that don鈥檛 want to sign a long-term lease. A broker can negotiate a fair price and terms.

Expanding in an existing facility can be attractive and convenient, but it may not be the most cost-effective strategy. If a tenant needs more assembly and warehousing space, for instance, it could lease less expensive space in a warehouse a block away, which wouldn鈥檛 increase fuel costs significantly.

Access to transportation is important to manufacturers, but they also should consider other factors. A company should look for a location that meshes with its corporate culture, and take into account factors like access to mass transit and support services, which impact employee happiness and retention.

It鈥檚 never too early for industrial businesses to assess their commercial real estate needs and evaluate whether they need more or less space. While landlords are beginning to gain negotiating clout, tenants still have considerable bargaining power. And an experienced broker can help them rightsize their space.

Senior Vice President Michael Merino specializes in industrial leasing and sales at NAI Norris, Beggs & Simpson. Contact him at 503-223-7181 or [email protected].