Given the large size of many industrial commercial real estate spaces, gaining a cent or two per square foot of occupancy cost savings can add up to a great deal of money. Here are three things that you can implement quickly to help reduce what you spend on your industrial space and on your CAMs:
Aggressively control utility usage.
Lighting and climate control are two major occupancy costs for industrial users. Installing high efficiency lighting fixtures with motion sensitive switches or timers can ensure that your lights are only on when you need them and that they they use as little power as possible when they are on. Programmable thermostats help you control your heating and cooling expenditures, especially when people are not working in your space. Comparing each space with your other industrial spaces will help you to identify which are the least efficient and most in need of attention.
Reduce your property taxes.
Many taxing authorities have failed to recognize the fact that industrial real estate values still remain below the peaks set in 2006, 2007 and 2008. Work with your landlord or directly with your county taxing authority to appeal your property's valuation and get a downward adjustment in your property taxes. If you do not have the ability to do this, consider hiring an attorney who will represent you on a contingency basis and only charge you if he or she is able to save you money.
Compare your rents.
Compare your occupancy costs in every space you occupy with your other spaces and with spaces on the open market. Use your comparison to work with landlords that are overcharging you to get a reduced rent. Most landlords would rather charge you a fair market rent than lose you and have to go back to the market to get the same market rent from someone else.
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