In this edition of Midland Times’ "Sound Off," we’re featuring insights from Amy Barnett, Senior Associate at NRG Realty Group. Our “Sound Off” gives real estate professionals the opportunity to share more about themselves, Midland’s market, and key trends that can inform and empower buyers and renters in making strategic decisions.
What are some key factors that tenants should consider when selecting an industrial property in Midland?
There are multiple factors a tenant should consider when selecting an industrial building, which underscores the importance of being represented by an industrial real estate expert.Location and proximity are important if a business needs high visibility or access to I-20. TxDOT is currently improving the I-20 Odessa-Midland corridor by adding main lanes, new interchanges, reconfiguring ramps, and converting the frontage roads from two-way to one- way operations. While this can simplify access to and from a business, it may cause traffic flow to require longer detours.
Operational needs will determine property characteristics such as size, power requirement, and the need for a crane or wash bay. If a company foresees future growth, the presence of flex space is also an important consideration.Lease structure and understanding the current market is a crucial element in the selection process. It is essential to know and understand lease terms such as duration, renewal options, rent escalations, and any additional costs such as maintenance, property taxes, and insurance.
Depending on the market and subject property, some or all of these terms can be negotiated.While a building may check the majority of the above requirements, inspecting the structure and systems can prevent future problems. Hiring an inspector, environmental consultant, licensed HVAC technician, and/or electrician to assess maintenance, safety, or environmental issues is a recommended approachThrough careful consideration and evaluation of these factors, tenants can make more informed decisions that align with their operational needs and business goals.