By HLC’s Managing Principal Canon Shoults
The industrial real estate market is settling into a new rhythm. We’re coming off unprecedented years of high demand fueled by a surge from the pandemic as companies reacted to supply chain disruptions. Today we’re seeing steady vacancy rates, fewer speculative developments, and a healthier balance between landlords and tenants as leasing activity and absorption right size to pre-covid levels.
But opportunities haven’t disappeared. Given the market is normalizing back to pre-pandemic levels, taking a strategic, back-to-basics approach with your commercial real estate assets matters more than ever. Choosing the right leasing team for your property is foundational for success. It isn’t just about filling the space. It’s about maximizing long-term value in a competitive market.
The Essentials of Industrial Leasing
Do you know what motivates your brokerage team? At Holt Lunsford Commercial, we operate by what we’ve coined as our “10 Commandments of Industrial Leasing”. These principles guide every decision and help us create value for our clients.
These “commandments” anchor how we operate and cover everything from how to make a standout first impression to what meaningful client follow-up looks like. For example, we always ensure that a space is fully presentable before a showing. Lights on, doors open, and everything is in its best condition. Details matter when helping a prospective tenant envision their future in your space.
Another principle we follow is to ask thoughtful questions. Brokers who ask the right questions maximize their time. We dig deep to understand the tenant’s needs and to thoughtfully sell the space. Some of those key questions are, “What are the drivers in selecting the right location?”
The answer might be anything from proximity to suppliers and customers or concerns over their employees’ commute time. Leasing brokers should also inquire about the tenant’s functional requirements for the facility. This includes their power needs, clear height, racking, office finish, and parking.
For example, the Dallas-Fort Worth market is attracting more manufacturing-oriented tenants that need heavy power. There are important time and cost factors to discuss in those cases. Asking questions at the front-end and making sure that brokers can articulate the unique features of your asset matters to the success of all parties.
Understanding the details allows a brokerage team to maximize the value of the listing and formulate the best recommendation for the building owner for a shot at winning the deal.
Look for an Ownership Mentality
Here’s a key question: Does your broker think like an owner? Every leasing decision impacts your property’s cash flow and long-term value. A broker with an “ownership mentality” will align today’s leasing decisions with tomorrow’s goals.
Once I worked with a client to lease a challenging industrial space. By implementing small but strategic lease adjustments, we attracted long-term tenants, ultimately leading to the property being fully occupied and sold for a premium. That experience shaped how I approach every deal. The right leasing partner will do the same – thinking beyond the immediate lease and focusing on what’s best for your property in the long run.
Acting as an owner also means being proactive and aggressive in your leasing approach. The right broker will have a keen understanding of the market and know when to move quickly to secure the best deal. They’ll help you stay ahead of the competition, making sure your property is positioned for lasting success.
Know the Market
Your leasing partner should bring a high level of market expertise. They need to understand your submarket and use that knowledge to give asset owners a competitive edge.
In places like Dallas-Fort Worth, sublease availability is up, and vacancy rates are steady at 10.3%. Construction costs are slowing new developments, making existing spaces more valuable. Your broker should stay ahead of trends like these and help you make informed decisions.
Having a keen understanding of one’s market also helps ensure that your broker knows when to get aggressive on things like offers or counters or knows when it’s time to offer concessions to get a deal done.
The Bottom Line
The industrial market is always shifting. Rising interest rates and tighter capital access are forcing companies to rethink their space needs. A flexible, strategic broker can guide you through these changes.
Choosing the right leasing agency isn’t just about filling space – it’s about creating long-term asset value, finding a partner who understands the market, thinks like an owner, and adapts to change. At Holt Lunsford Commercial, we combine expertise with an ownership mindset to help you maximize your property’s potential.
