Hit 200k on a warehouse lease, thought I overpaid, turns out I was wrong

I signed a 40,000 square foot warehouse lease off I-25 near Thornton last quarter at $14.50 per square foot NNN. My broker kept saying the market was tighter than I thought, but I figured he was just pushing for a quick close. Then I looked at the comps from 6 months ago, same building class was going for $12.80, and I realized the 13% jump was real. Now I'm wondering if the Fed's rate cuts actually drove this run-up, or if it's just the Amazon distribution center hiring wave pushing everyone north. Has anyone else seen their renewal quotes come in way above their old rate this year compared to tenant improvement costs?

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karen_perry3813d ago

Ngl, my renewal quote came back 18% higher and I almost framed it as a joke for my wife, except she didn't laugh. I signed a small flex space near there and the landlord threw in fresh paint and a new dock seal to soften the blow, like that was supposed to make the math feel better. The Amazon wave is real, I watched three trucks from the new center cut through our lot every morning, so I guess I'm paying for their lunch break now. My broker just shrugged and said welcome to the club, which is rich since he's the one who pocketed his cut.