Tim Blackman‘s article on the recent boom in demand for industrial property has been featured in Warehouse Logistics.
Tim discusses the number of driving forces behind this recent boom and the key considerations when looking to acquire industrial properties by way of a formal lease that has become especially important in today’s hi-tech industry.
- Survey – Whilst this is always recommended in order to inspect a property’s general state of repair and condition, it can also be a useful tool to review the functionality of existing technology and service media which an operator will typically take on or responsibility for under a full repairing lease.
- Power – Operators with high power requirements should consider the existing power supply and whether that will need to be upgraded. If it does, then the securing of a new substation or power line will involve not just the local utility company, but also possibly adjoining land owners. This can take a significant period of time and involve additional costs. If such power delivery is critical then an operator would be recommended to enter into a contract that is conditional on the power supply being connected.
- Connectivity – New technologies are increasingly reliant on ultra-fast broadband speeds. If a property does not have sufficiently quick broadband then again this will need to be highlighted early on. The installation of a new ultra-fast broadband line is usually welcomed by landlords however it will still need to be documented, often by way of wayleave agreement.
- Think Green – New leases are increasingly including obligations on tenants and landlords to work together in implementing green initiatives to reduce the energy consumption of a property. These ought to be considered early on so that the impact on day-to-day operations can be reviewed.
To read the article in full, follow the link provided here.