Pushing Dirt

NAI KLNB, in its capacity as exclusive agent, is pleased to offer for sale Grand Central Plaza Building III (the “Project”), an 88,109 square foot, two-story building located in Landover, Maryland.

The offering represents an exciting opportunity for an owner-occupant looking to acquire a headquarters building at a dramatic discount to replacement cost. The building features 40,530 square feet of loading-served lower level high ceiling space that could serve as office or warehouse space, and 47,579 square feet of upper level office space including a fully renovated cafeteria.

Ideal users include value conscious office tenants, warehouse or manufacturing users, houses of worship, and schools.

The building is priced at a remarkably low $2.5 million — $28 per square foot — with seller-financing available.

Email or call Chris Kubler (agent, KLNB) at 301-455-8840 for more details or a tour.

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If you’re new to commercial real estate investing, consider making industrial real estate a focus. I did, and I don’t regret it. Why?

1. It’s not where “the others” are focusing. It doesn’t have the glamor of downtown office product It’s dirty. So there’s less competition all around.
2. It’s much simpler to learn. You don’t have to lean what a natural break point is, or a gross rent multiplier. You’re renting four roofs and a wall and some doors. You can be up to speed very quickly on market rents because it’s much or of a commodity.
3. It’s less volatile. Rents don’t swing as dramatically up or down. Nor does vacancy. I’m not saying that there isn’t risk associated with industrial product, but you will never see the phenomenon we are seeing in retail right now hundreds of stores closing, all across the country, all at once.
4. It’s easy to underwrite. There are only two major capital items that need attention in most industrial buildings: the roof and the pavement. Once you understand their condition, you’ve got a handle on how much to set aside in a capital reserve over the next 5 to 10 years.
5. You can dress casually :). Generally whether you’re canvassing, meeting tenants or owners or brokers, you’re going to find a lot fewer people wearing suits and ties.

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Precedent indicates that industrial rents and industrial values are the least volatile among all the major commercial property types. A look a current circumstances verifies this: retail is taking the the biggest hit with millions of feet of negative net absorption. Office is generally falling out of favor as well. Industrial rents in the DC area for instance are off slightly - generally 10 percent give or take - but the warehouse fundamentals are reasonably sound.

As an investment class, it’s best to focus on small bay, multi tenant industrial product with ample truck courts and desirable locations with easy access to road networks. This product compares favorable to “big box” distribution product which is more sensitive to swings in the economy: with less product to distribute to consumers, there’s less demand for distribution space. The small bay space, full of plumbers and electricians and the like that generally manage to hang on through these sorts of downturns.

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Attractive 50,000 sf warehouse for sale or lease near BWI Airport.

Majority of space is fully air conditioned.

One smaller tenant in place.

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Email or Call Chris Kubler at 301-455-8840 for more details or a tour.

Langley

NAI KLNB is pleased to offer this 50,000 square foot office warehouse building on 2.13 acres.

Building has two occupants: seller (who will vacate or lease back) and Fortune 500 tenant.

Great cheap building for warehouse user, investor, or office conversion.

Email or call Chris Kubler at 443-574-1415 for more details or a tour.

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This 42,155 square foot warehouse includes excess land that could support parking, outside storage, or an additional 17,000 of warehouse space.

Please email or call Chris Kubler at 301-455-8840 for more details.

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NAI KLNB, in its capacity as exclusive agent, is pleased to offer for sale the fee simple interest in an exceptionally well-located office/warehouse building in downtown Washington, DC. 2052 West Virginia Avenue (the “Project”), is a two story building ideally suited for redevelopment or for an owner-occupant.The building contains approximately 36,000 rentable square feet on two levels, with both levels on grade and with ample loading. The Project fronts West Virginia Avenue and is just off of New York Avenue. A hot new nightclub is opening adjacent to the property.

2052 West Virginia Avenue is also contiguous to the 15.5 acre Patriot Yards (formerly a Hecht Company distribution center). Patriot Yards is slated for redevelopment with the most likely scenario involving a mix of retail and office uses.

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One way to create value in an industrial building is to consider a roof raise. A dated 14′ clear might sit empty for years while 30′ clear and up buildings all around it fill up.

You don’t even have to do the roof lift speculatively. Space Technology Inc. will gladly take your building specs and formulate a quote to raise the roof. In fact, they will do this with every building in your portfolio in the hopes that one of these quotes will turn into a job someday. You can take the bid and market that 14′ clear building as a state of the art high cube building.

Not all warehouses are good candidates for the process, and expect the price to come in at $10 per square foot or more.