One concept that has often gone unnoticed in leases is a non-disturbance clause or agreement. It benefits the tenant in case of a lender foreclosure on the property or premises they occupy. The agreement is between a tenant, a landlord, and a landlord's lender.
-The tenant agrees: His/her interests in the premises are subordinate to the lender's interests.
-The lender promises: If there is a default by the landlord on the mortgage, the lender will honor the terms of the lease and not disturb the tenant, so long as the tenant is not in default.
Should a lender foreclosure take place without this clause in place, the tenant would be at the mercy of the lender. The lender could demand new terms (i.e. higher lease rate, increased lease escalations, removing or altering lease extensions, etc).
Given our current environment, this clause is becoming an increasingly important protection for the tenant and one to ensure is in your current lease and future lease agreements.
Sunday, November 15, 2009
Wednesday, June 10, 2009
Common Acronyms/Terms for the Warehousing/Distributing Professionals
If you are dealing with Professionals engaged in the Warehousing/Distribution line of work, you may want to familiarize yourself with these common terms and acronyms. One of the basic rules of selling is being fluent in the languages that your clients speak, so I hope you will be able to add a few of these words to your vocabulary.
ABM - ACTIVITY BASED MANAGEMENT is the management of an enterprise based on the activities and processes in the organization and key performance measures of time, quality and cost for each activity and process.
ABC - ACTIVITY BASED COSTING is a technique to determine the resources required to produce a particular product or serve a particular set of customers. This should serve to determine which products or customers are profitable and also to improve a process.
AEI - AUTOMATIC EQUIPMENT IDENTIFICATION is the use of machine readable tags on transportation equipment such as railcars, containers and trucks in order to track location and usage.
AG/VS - AUTOMATED GUIDED VEHICLE SYSTEM is a system to control vehicles that transport loads directed along a wireless, logical guidepath, an embedded guidewire, or other tracking mechanism.
AI - ARTIFICIAL INTELLIGENCE is the concept that computers can be programmed to assume capabilities such as learning, reasoning, adaptation and self-correction.
ASN - ADVANCE SHIPMENT NOTICE consists of detailed information of the contents of a shipment which is transmitted and made available before the arrival of the merchandise.
AS/RS - AUTOMATED STORAGE/ RETRIEVAL SYSTEM is a combination of equipment and controls to handle, store, and retrieve materials with a high degree of automation.
BENCHMARKING - the use of specific measurements to compare your performance against industry’s best practices in order to establish operating targets and productivity programs which lead to superior performance.
BAR CODING is a system in which a label is “read” electronically and information is recorded or transmitted.
CAD - COMPUTER AIDED DESIGN is a type of software that is used for drafting and design.
CD - CROSS DOCKING is a technique in which incoming merchandise is broken down or moved “as is” to the shipping dock. This eliminates the need for storage.
CFM - CONTINUOUS FLOW MANUFACTURING is a strategy for eliminating wasted movement, unnecessary processes and extraneous data from manufacturing.
CFP - CUSTOMER FOCUSED PLANNING is the integration of information and utilization of assets with emphasis on meeting the needs of the customer.
CIP - CONTINUOUS IMPROVEMENT PROGRAM is a method of measuring quality, service levels, productivity and other criteria; improving products and services while maintaining or reducing costs; and demonstrating year-over-year plans for improvement and cost reduction of the services provided.
CIT - CONTINUOUS IMPROVEMENT TEAM is a cross-functional team established to ensure transfer of information to all areas, to review manufacturing cost-effectiveness, sourcing options, technical data flow and determine how to best satisfy customers.
CRP - CONTINUOUS REPLENISHMENT PLANNING involves transferring responsibility for retail warehouse replenishment from the retailer to management or suppliers.
CRT - CATHODE RAY TUBE is the visual output device used to display computer output. Preferred usage is monitor.
CTR - COMPUTERIZED TRUCK ROUTING is a method of using computers to generate truck routes based on stop locations, delivery appointments and backhauls to improve utilization.
CYCLE COUNTING A method of taking physical inventory in which only a few items are counted at a time but eventually all inventory is counted.
DOE - DESIGN OF EXPERIMENTS is a sophisticated quality improvement tool that measures the relative impact of several factors in a given process area. The impact of all factors in question is measured simultaneously, eliminating the need to conduct independent and extensive testing on each variable. DOE is generally used to isolate opportunities to refine a process or for process redesign once a set of problems within the process has been stabilized.
DSD - DIRECT TO STORE DELIVERY is a distribution methodology based upon having a supplier deliver to the retail outlet, without going through the retailer’s distribution center
ECR - EFFICIENT CONSUMER RESPONSE is the grocery industry’s acronym for QR (Quick Response) which promotes the development of a demand-driven grocery supply system in which partners work together to streamline business processes and provide maximum consumer value at minimum cost.
EDI - ELECTRONIC DATA INTERCHANGE is computerized paperless communication between two or more distinct entities.
ESFR - EARLY SUPPRESSION FAST RESPONSE is a sprinkler system that eliminates the need for in-rack sprinklers.
ESP - ENTERPRISE SYSTEMS PLAN is a blueprint for proactive long range planning, decision making, and orderly change.
HAZMAT - HAZARDOUS MATERIALS are raw materials and products that have been classified by regulatory agencies as dangerous, i.e. flammable, toxic, caustic, etc.
ILM - INTEGRATED LOGISTICS MANAGEMENT involves the coordinated management of logistics functions and collaboration of supply chain participants to reduce total system costs.
IS - INFORMATION SYSTEMS (same as MIS or MANAGEMENT INFORMATION SYSTEMS) is the data processing support used to provide information to business operations.
IT - INFORMATION TECHNOLOGY consists of data collection/storage, communications, and processing technologies.
JIT - JUST IN TIME is the technique of replenishing an operation (manufacturing, store, etc.) just before it is needed.
LAN - LOCAL AREA NETWORKS are a software and wiring system used to connect computers and peripheral devices in order to share information and resources.
LIS - LOGISTICS INFORMATION SYSTEMS provide information about the distribution and transportation activities in a company.
MIS - MANAGEMENT INFORMATION SERVICES (See IS).
MRP II - MANUFACTURING RESOURCES PLANNING is the computer based method for planning the use of a company’s resources, including raw materials, vendors, production equipment, and processes.
OUTSOURCING is the practice of using a third party provider to perform functions formerly done in-house.
PARADIGM A model, example or pattern.
PARTNERING is a type of strategic alliance which is formed to serve a specific need.
PDT - PORTABLE DATA TERMINALS are devices used to gather operating information. They communicate with the host computer by RF signals or by batch downloads at a central site.
POS - POINT OF SALE captures information as the sale is made and the data is distributed to sales, inventory, and financial management systems.
PI - PROCESS INNOVATION (OR REENGINEERING OR REDESIGN) (See REENGINEERING)
QR - QUICK RESPONSE is the concept of replenishing goods quickly.
RF - RADIO FREQUENCY is used to link computer peripherals without using wires, thereby permitting mobility.
RFT - RADIO FREQUENCY TERMINAL A terminal which communicates with a host computer by radio instead of by wire.
REENGINEERING is the process of making revolutionary changes in performance. It might be on the order of 50% to 100% improvement rather than objectives of 5% to 10% in incremental process improvement. (Also called PI - PROCESS INNOVATION).
RFDC - RADIO FREQUENCY DATA COMMUNICATION is the same as RF COMMUNICATIONS.
SCM - SUPPLY CHAIN MANAGEMENT is an integrating process to optimize product and information flow from the purchase of raw materials to the delivery of finished product.
SIX SIGMA is a statistical term defining standards with only 3.4 errors or defects per million measurable units of product or service.
SQC - STATISTICAL QUALITY CONTROL is a tool that sheds light on process variation by predicting trends.
TCA - TOTAL COST ANALYSIS is a measure of logistics performance to achieve customer service objectives.
TCO - TOTAL COST OWNERSHIP is a technique to develop the true cost of doing business with a particular supplier for a particular good or service.
THIRD PARTY also known as outsourcing, is the use of non-employee resources for specific activities or services.
THIRD PARTY CONTRACTORS provide services for customers which may include warehousing, transportation, customer service, manipulation of merchandise and any other requirements that a customer wants.
TQM - TOTAL QUALITY MANAGEMENT is the concept of continuous process improvement to develop processes that are controlled and result in predictable quality products.
UPC - UNIVERSAL PRODUCT CODE is a standard bar code symbology used in retail businesses, particularly in the grocery industry.
UCC 128 is a standard bar code symbology.
VE - VALUE ENGINEERING is a total approach to design that achieves improved performance and quality by stressing simplicity and integration of design and manufacturing techniques.
VR - VIRTUAL REALITY is the use of computers to generate interactive simulations.
VR - VOICE RECOGNITION is a system whereby speech is decoded, captured and interacts with a computer.
WCS - WAREHOUSE CONTROL SYSTEMS are programs designed to control warehouse operations, labor, inventory and equipment.
ABM - ACTIVITY BASED MANAGEMENT is the management of an enterprise based on the activities and processes in the organization and key performance measures of time, quality and cost for each activity and process.
ABC - ACTIVITY BASED COSTING is a technique to determine the resources required to produce a particular product or serve a particular set of customers. This should serve to determine which products or customers are profitable and also to improve a process.
AEI - AUTOMATIC EQUIPMENT IDENTIFICATION is the use of machine readable tags on transportation equipment such as railcars, containers and trucks in order to track location and usage.
AG/VS - AUTOMATED GUIDED VEHICLE SYSTEM is a system to control vehicles that transport loads directed along a wireless, logical guidepath, an embedded guidewire, or other tracking mechanism.
AI - ARTIFICIAL INTELLIGENCE is the concept that computers can be programmed to assume capabilities such as learning, reasoning, adaptation and self-correction.
ASN - ADVANCE SHIPMENT NOTICE consists of detailed information of the contents of a shipment which is transmitted and made available before the arrival of the merchandise.
AS/RS - AUTOMATED STORAGE/ RETRIEVAL SYSTEM is a combination of equipment and controls to handle, store, and retrieve materials with a high degree of automation.
BENCHMARKING - the use of specific measurements to compare your performance against industry’s best practices in order to establish operating targets and productivity programs which lead to superior performance.
BAR CODING is a system in which a label is “read” electronically and information is recorded or transmitted.
CAD - COMPUTER AIDED DESIGN is a type of software that is used for drafting and design.
CD - CROSS DOCKING is a technique in which incoming merchandise is broken down or moved “as is” to the shipping dock. This eliminates the need for storage.
CFM - CONTINUOUS FLOW MANUFACTURING is a strategy for eliminating wasted movement, unnecessary processes and extraneous data from manufacturing.
CFP - CUSTOMER FOCUSED PLANNING is the integration of information and utilization of assets with emphasis on meeting the needs of the customer.
CIP - CONTINUOUS IMPROVEMENT PROGRAM is a method of measuring quality, service levels, productivity and other criteria; improving products and services while maintaining or reducing costs; and demonstrating year-over-year plans for improvement and cost reduction of the services provided.
CIT - CONTINUOUS IMPROVEMENT TEAM is a cross-functional team established to ensure transfer of information to all areas, to review manufacturing cost-effectiveness, sourcing options, technical data flow and determine how to best satisfy customers.
CRP - CONTINUOUS REPLENISHMENT PLANNING involves transferring responsibility for retail warehouse replenishment from the retailer to management or suppliers.
CRT - CATHODE RAY TUBE is the visual output device used to display computer output. Preferred usage is monitor.
CTR - COMPUTERIZED TRUCK ROUTING is a method of using computers to generate truck routes based on stop locations, delivery appointments and backhauls to improve utilization.
CYCLE COUNTING A method of taking physical inventory in which only a few items are counted at a time but eventually all inventory is counted.
DOE - DESIGN OF EXPERIMENTS is a sophisticated quality improvement tool that measures the relative impact of several factors in a given process area. The impact of all factors in question is measured simultaneously, eliminating the need to conduct independent and extensive testing on each variable. DOE is generally used to isolate opportunities to refine a process or for process redesign once a set of problems within the process has been stabilized.
DSD - DIRECT TO STORE DELIVERY is a distribution methodology based upon having a supplier deliver to the retail outlet, without going through the retailer’s distribution center
ECR - EFFICIENT CONSUMER RESPONSE is the grocery industry’s acronym for QR (Quick Response) which promotes the development of a demand-driven grocery supply system in which partners work together to streamline business processes and provide maximum consumer value at minimum cost.
EDI - ELECTRONIC DATA INTERCHANGE is computerized paperless communication between two or more distinct entities.
ESFR - EARLY SUPPRESSION FAST RESPONSE is a sprinkler system that eliminates the need for in-rack sprinklers.
ESP - ENTERPRISE SYSTEMS PLAN is a blueprint for proactive long range planning, decision making, and orderly change.
HAZMAT - HAZARDOUS MATERIALS are raw materials and products that have been classified by regulatory agencies as dangerous, i.e. flammable, toxic, caustic, etc.
ILM - INTEGRATED LOGISTICS MANAGEMENT involves the coordinated management of logistics functions and collaboration of supply chain participants to reduce total system costs.
IS - INFORMATION SYSTEMS (same as MIS or MANAGEMENT INFORMATION SYSTEMS) is the data processing support used to provide information to business operations.
IT - INFORMATION TECHNOLOGY consists of data collection/storage, communications, and processing technologies.
JIT - JUST IN TIME is the technique of replenishing an operation (manufacturing, store, etc.) just before it is needed.
LAN - LOCAL AREA NETWORKS are a software and wiring system used to connect computers and peripheral devices in order to share information and resources.
LIS - LOGISTICS INFORMATION SYSTEMS provide information about the distribution and transportation activities in a company.
MIS - MANAGEMENT INFORMATION SERVICES (See IS).
MRP II - MANUFACTURING RESOURCES PLANNING is the computer based method for planning the use of a company’s resources, including raw materials, vendors, production equipment, and processes.
OUTSOURCING is the practice of using a third party provider to perform functions formerly done in-house.
PARADIGM A model, example or pattern.
PARTNERING is a type of strategic alliance which is formed to serve a specific need.
PDT - PORTABLE DATA TERMINALS are devices used to gather operating information. They communicate with the host computer by RF signals or by batch downloads at a central site.
POS - POINT OF SALE captures information as the sale is made and the data is distributed to sales, inventory, and financial management systems.
PI - PROCESS INNOVATION (OR REENGINEERING OR REDESIGN) (See REENGINEERING)
QR - QUICK RESPONSE is the concept of replenishing goods quickly.
RF - RADIO FREQUENCY is used to link computer peripherals without using wires, thereby permitting mobility.
RFT - RADIO FREQUENCY TERMINAL A terminal which communicates with a host computer by radio instead of by wire.
REENGINEERING is the process of making revolutionary changes in performance. It might be on the order of 50% to 100% improvement rather than objectives of 5% to 10% in incremental process improvement. (Also called PI - PROCESS INNOVATION).
RFDC - RADIO FREQUENCY DATA COMMUNICATION is the same as RF COMMUNICATIONS.
SCM - SUPPLY CHAIN MANAGEMENT is an integrating process to optimize product and information flow from the purchase of raw materials to the delivery of finished product.
SIX SIGMA is a statistical term defining standards with only 3.4 errors or defects per million measurable units of product or service.
SQC - STATISTICAL QUALITY CONTROL is a tool that sheds light on process variation by predicting trends.
TCA - TOTAL COST ANALYSIS is a measure of logistics performance to achieve customer service objectives.
TCO - TOTAL COST OWNERSHIP is a technique to develop the true cost of doing business with a particular supplier for a particular good or service.
THIRD PARTY also known as outsourcing, is the use of non-employee resources for specific activities or services.
THIRD PARTY CONTRACTORS provide services for customers which may include warehousing, transportation, customer service, manipulation of merchandise and any other requirements that a customer wants.
TQM - TOTAL QUALITY MANAGEMENT is the concept of continuous process improvement to develop processes that are controlled and result in predictable quality products.
UPC - UNIVERSAL PRODUCT CODE is a standard bar code symbology used in retail businesses, particularly in the grocery industry.
UCC 128 is a standard bar code symbology.
VE - VALUE ENGINEERING is a total approach to design that achieves improved performance and quality by stressing simplicity and integration of design and manufacturing techniques.
VR - VIRTUAL REALITY is the use of computers to generate interactive simulations.
VR - VOICE RECOGNITION is a system whereby speech is decoded, captured and interacts with a computer.
WCS - WAREHOUSE CONTROL SYSTEMS are programs designed to control warehouse operations, labor, inventory and equipment.
Friday, June 5, 2009
Updated Rental Survey - Industrial Lease Rates for Salt Lake County
I have completed my latest rental survey for Industrial Lease Rates in Salt Lake County. 
I have broken it up by region and am showing how many availables are on the market in each of the six quadrants, at what rate, and in what size range. This will give the prospective tenant or landlord a quick view at what to expect as far as what lease rates are doing out there right now. For example, say I am a tenant in the SouthWest quadrant and I would like to relocate my business up to the NorthWest quadrant. I will need 15,000 SF when I move up there, so looking at the rental survey page here, I know that the average lease rate in that area at that size is $0.54 NNN. (All lease rates on the chart have been modified to reflect NNN lease rates).
I have also included a chart from excel that illustrates the current average lease rates in the county based on size range. So if you need 45,000 SF, you can look at this graph and see that you will find, on average, the lowest lease rates in the Central East quadrant.
Please email me at jhagblom@naiutah.com for a clean .pdf version of the report.
Sunday, May 31, 2009
New Land Listing
On Friday, May 29th, I picked up a new land listing for my team. I had been asked to contact a land owner by my partner Patrick a few weeks ago. The land listing had been on the market for sale and lease for about 9 months with one of our competing brokerages. The listing had expired and I contacted the land owner and got to talking about how my team had closed several land deals in the area and had a buyer currently looking for about 4-5 acres for a build to suit project. The land owner has 4.15 acres and my team thought it would be a great play for our client. Sure enough, there was interest there and within three days we were able to get in an offer to the land owner. On Friday I sat down with the land owner and got the listing agreement signed as well as the counter offer. Thanks to being part of a great team, we were able to pull this all together. Our new land listing is shown below. We are taking it to market at $4.50 psf for 4.15 acres and still looking for offers! Contact me at jhagblom@naiutah.com
Friday, February 13, 2009
Useful Discovery - Free Public Records Directory
I stumbled upon this useful website today while working with NAI's Corporate Services on a project for Flying J. The website is Public Records Free Directory and was extremely useful. My project involved gathering data on 50-odd Flying J properties. I needed to know total acreage, parcel numbers, and true-market value. By going to the Public Records Free Directory site and selecting the State and then the County, I was able to find a phone number to the Assessor's Office in each county. Once I had the number I gave them a call and asked for the information I needed on each Flying J property. All the Assessor's Office needed from me was a simple address and they were able to give me all the information I needed!
Also, almost every Assessor's Office had their own website (linked through the Public Records Free Directory website) where I was able to pull up some kind of map/parcel viewer and get some great aerial views of the properties.
If you are doing any kind of work for a national company, this is a great resource.
Also, almost every Assessor's Office had their own website (linked through the Public Records Free Directory website) where I was able to pull up some kind of map/parcel viewer and get some great aerial views of the properties.
If you are doing any kind of work for a national company, this is a great resource.
Tuesday, January 20, 2009
Available Commercial Real Estate - January 2009
The Data Department at NAI Utah has the best commercial real estate data in the state. On a daily basis a team of people are tracking the latest comps and availables to hit the market. From a variety of sources they pull the data and make it available to the NAI agents. Here is a spreadsheet I have put together that summarizes the availability currently on the market.
I am very impressed by these numbers. This means, that as an agent, I have at my fingertips over 2,700 available properties to show clients. Since I specialize in Industrial Real Estate, there are over 650 available properties I have detailed information on! It is no surprise that utilizing my services as a broker an be very beneficial for tenants, owner/users, and investors alike. Knowledge is definately power and being part of NAI Utah is what makes me such a powerful broker. If you are in the market for space, please don't hesitate to give me a call at 801-578-5555.
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