Learn about actual and potential costs

How much should I pay for Industrial Facility Rental?

What is the average price of Industrial Facility Rental?

This procurement report includes pricing information to help you purchase Industrial Facility Rental. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of Industrial Facility Rental been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase Industrial Facility Rental yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing Industrial Facility Rental?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Industrial Facility Rental with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

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Find the vendor to meet your needs

Where can I purchase ?

Among the estimated 25,600 industrial facility lessors in the United States, the top four players account for less than 30.0% of total market revenue, indicating a low level of concentration. The vast majority of suppliers are small and have few or no employees, so they lack the resources to capture... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Experience and Expertise

How long have you provided these products to your longest-tenured client?

What qualifications does your staff have and what measures do you take to keep those qualifications up to date?

What industry do you most commonly supply this product for?

To what extent will ordering multiple products from your firm allow me to save on costs?

What is your repeat business rate for businesses in my industry and how does that compare to your overall rates?

Supply Chain Risk

Over the past three years, what percentage of your revenue has been dedicated to raw input materials? How has that changed?

Has the availability of raw materials tightened due to the coronavirus outbreak?

Over the past three years, what percentage of your revenue has been dedicated to labor?

How have fluctuations in input prices affected the prices of your products during the past three years?

How do you mitigate sudden price increases in raw materials?

When input prices rise, how much of the cost is absorbed by you and how much is passed onto buyers?

How, if at all, has your supply chain been affected by import tariffs levied in 2018?

Regulation

How do you manage regulatory change? Do you have regulation advisers or methods to track regulation?

How have changing regulations influenced your pricing now and how will the changes affect prices over the life our proposed agreement?

What ongoing training procedures do you provide for your staff?

Have you ever been found to be noncompliant with regulatory frameworks?

Amid widespread health concerns during the COVID-19 pandemic, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?

Additional Fees

What expenses do rental fees cover?

What level of responsibility will renters have for CAM or administrative fees?

How are adjustments in rent determined during the life of the lease?

Do lessors add on value increases to rent if building values increase due to renovations undertaken by tenants?

Contracts

What is the standard length of lease agreements?

Can extending the initial lease term yield cost savings over the life of the contract?

What incentives does the lessor offer for improving the property, such as rent reductions or credits?

Are there any restrictions on the type of business that renters can operate on the premises?

Amid widespread health concerns, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions?

Are you experiencing fluctuations in demand as a result of the coronavirus outbreak? What measures are you taking to handle changes in demand?

Zoning

Is the facility located in a light or heavy industrial zone?

Are there any zoning ordinances that affect how the facility can be renovated?

Are there any special permits or approvals needed from the government to conduct business or undertake renovations?

Are there any limitations on signage outside of the facility?

Facility Specifications

How old is the facility?

From what materials was the facility constructed?

What major renovations have been done to the building?

What types of electrical, plumbing and HVAC systems are already in place?

Is the unit telephone- and cable-ready?

Lessor Requirements

What limitations on the outside appearance of the building are in place?

Are there any contractor or service limitations?

Are there any limitations on the utility services available, and do lessors assume the cost and then bill renters for utilities?

What are the lessor's business hours?

Transportation

Where are the nearest highways, railroads and shipping yards?

Is there a loading dock for shipments?

Are there any traffic or parking limitations at the facility?

Who is responsible for maintenance of parking areas?

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Key elements for every RFP

What should my RFP include?

Project Budget

Vendors should include the base rental rate for the property, typically in the form of per square foot per month.

Vendors should include other costs for which buyers are responsible, such as utilities and parking.

Vendors should list any improvement allowances or concessions offered (i.e. free month of rent), as well as any limitations on these values.

Buyers should reference the Benchmark Price and Total Cost of Ownership sections of this report for assistance in creating a budget.

Selection Criteria

Buyers should evaluate each property based on its rental rate and other costs.

Buyers should evaluate the overall quality of the property (e.g. its type, amenities, features, parking).

Buyers should evaluate vendors' ability to meet their service requirements.

Buyers should evaluate vendors' experience and financial performances.

For other selection criteria requirements, buyers should reference the Buying-Decision Scorecard section of this report.

Project Schedule

Buyers should include the date when proposals are due and any other relevant dates (e.g. property tours) prior to the contract award.

Buyers should include the date by which the property must be available.

Evaluate major factors to mitigate risk

How risky is the supply chain?

The supply chain risk for industrial facility rental is moderate. Industrial facility lessors source inputs from a number of upstream suppliers, including real estate sales and brokerage firms, finance and insurance companies, property managers, construction firms and utility providers. Fortunately, lessors are not dependent on critical inputs that could disrupt... Subscribe to learn more.

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