Which Industrial Building Do You Buy?
The flight to quality continues to be the route straight through the DC industrial market. EDGE Commercial Real Estate broker Josh Katz says it’s not just about the rent anymore. If a tenant is looking at two nearly identical buildings in a submarket, but Building A is 20 years old and Building B was built last year and costs 20% more, it’s generally been Building B hands down. This break from convention, where cheaper is the better choice, is causing owners of older properties to get with the program in order to compete. The trick: creating efficient space. Josh is dealing with this challenge firsthand, taking a 78,000 SF 1988-built Beltsville flex building and suggesting ways to make it more appealing to the masses: better loading, parking and higher ceilings—fit more inventory and people in the same space. The owner, Manhattan-based Time Equities, is grateful for the help. Josh says more and more owners are looking to EDGE to guide them in this new reality. For more info on our Bisnow partner, click here.
