• I hired Ward Richmond because I needed a fast-paced individual who specializes in solutions for 3PLs and could deliver a comprehensive solution that maximized site value and enabled me to close the deal. His market intelligence and relentless effort on this project undoubtedly helped us secure the business with this new, Fortune 500 customer.

    BRETT M. MEARS President - Palmer Logistics
  • Ward Richmond understands the 3PL business. We rely on Ward to help solve our customers’ supply chain opportunities and provide them with logistics solutions that fit their needs.

    BRYAN KELLER Chief Executive Officer – Keller Logistics
  • Ward has consistently demonstrated a high level of customer service, a strong work ethic, and comprehensive understanding of transportation & logistics-related real estate.

    ED Brickley Fund Manager, Realterm Logistics
  • Ward and his team have consistently delivered a high level of customer service over the course of several years and hundreds of transactions by working closely with our team in an effort to assist us with developing and implementing creative real estate solutions.

    Frank Mazzone RM, Real Estate, TFI International
  • Positive attitude and customer-centered approach made for a great working relationship.

    Joe Fidalgo MD, N America, Marine Harvest
  • Ward and his team have consistently exceeded our expectations while working closely with our Properties Team to execute our real estate strategies and achieve our stated objectives.

    MAYNARD F. SKARKA COO, Yrc Freight
  • The Colliers team worked quickly and efficiently to leverage their local market relationships to find KW multiple short term, flexible space solutions in an expedient and professional manner.

    DEAN DOKGO Vice President, KW International
  • Ward has acted as our strategic real estate partner for several years having assisted our team during our rapid growth by utilizing strong relationships and unparalleled market knowledge to source off-market opportunities for property expansion needs.

    TAYLOR WHITE CEO, Performance POP

Ward Richmond

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Posts by Ward Richmond

The GaryVee Audio Experience!

November 21, 2018 Life Coaching, Etc. 0 Comments

I am excited as hell and humbled AF to be featured on the GaryVee Audio Experience this week.

The GaryVee Audio Experience!

by Ward Richmond

I am excited as hell and humbled AF to be featured on the GaryVee Audio Experience this week. I discovered Gary Vee a couple of years ago and had the opportunity to meet with him and his core team at Vaynermedia to discuss digital marketing strategies in 2018! The experience was mind blowing, to say the least.

I highly recommend that you listen to this podcast and let Gary do his thing and drop some serious knowledge on you.

DISCLAIMER & FOUL MOUTHED LANGUAGE WARNING: If you don’t know Gary (or me) – then you may not know that we both like to cuss like sailors when we talk on Podcasts. So, if that happens to offend you, please refrain from listening below and I recommend you go read my Q3 2018 DFW Industrial Market Report which does not have any cussing. Rather, it discusses why I am thankful for industrial real estate and how others find warehouses to be “sexy”.

This Podcast is titled INSIDE 4D’s: Episode 1 and was released on November 18, 2018. You can find it right here! http://askgaryvee.garyvee.libsynpro.com/inside-4ds-episode-1


DFW Market Update – Q3 2018

November 20, 2018 Market Reports 0 Comments

As DFW cruises through another Peak Season, Amazon is kicking off its Black Friday sales a week before Thanksgiving.

Cruise Control

By Ward Richmond

As DFW cruises through another Peak Season, Amazon is kicking off its Black Friday sales a week before Thanksgiving. I’m not surprised.

Consumerism is at an all-time high and so is the demand for Big Box Distribution Centers. This is especially true in my backyard and rapidly growing hometown of Dallas, TX! And, let’s not forget our cowboy cousin, Fort Worth!

In Q3 2018, the DFW Industrial Real Estate Market absorbed 3.5 Mil SF of new deals which pushes YTD absorption numbers past 13 Mil. We still have about 7 Mil SF to go if we want to hit 20 – which is what the large and in-charge landlords are hoping will happen.

Despite record strong leasing activity, our vacancy rates popped back up above 6% this quarter due to a massive amount of new product being delivered. Developers slammed down another 10 Mil SF, further expanding our Texas tilt wall jungle pushing New Supply YTD up to almost 17 Mil SF.

It should be no surprise that these aggressive developers are still pushing the eComm envelope with another 24 Mil SF currently under construction!

During this season of Thanksgiving, industrial real estate professionals everywhere should be very thankful to be living in the Golden Age of Ecommerce and working through the longest and strongest bull market in industrial real estate history!

I mean, I keep hearing people say that Industrial Real Estate is “Sexy”! They just might have a point.

To get further inside my supply chain brain,
please check out my website and blog:
www.SupplyChainRealEstate.com

Q3 2018 TOP DFW DEALS

    • Home Depot leased 2.3 Mil SF from NorthPoint Development at Dallas Global Industrial Center in Dallas.
    • Amazon leased a 3 Story/ 80’ Clear/ 855,000 SF beast of a building from Hillwood at Commerce 30 just south of I-30 along Chalk Hill Road in the Cockrell Hill area of west Dallas.
    • McLane Company lease 670,300 SF from Highridge Provender at Provender Logistics Center in Fort Worth.
    • Elements International leased 487,200 SF from IDI Logistics at Skyline Trade Center in Mesquite.
    • Alan Ritchey leased 450,340 SF from Jackson Shaw/Clarion at Parc GSW in Irving.

Q3 2018 TOP TEAM RICHMOND PROJECTS

    • Chase Industries (with Bill Buntyn/ Colliers Nashville) – Irving, TX—172,173 SF—New Lease
    • DB Schenker – DFW Airport, TX—130,270 SF—Renewal
    • YRC Worldwide – Carrollton, TX—75,793 SF—New lease
    • DB Schenker – Cd. Juárez, Mexico—72,205 SF—New Lease
    • FedEx Freight – Virginia Beach, VA—22,000 SF—Disposition

Key Takeaways

The vacancy rate experienced an increase of over 1.4%, as much of the product that delivered this quarter was speculative. With overall leasing activity down somewhat this year, expect vacancy to uptick more this year as close to 70% of product currently under construction does not have a tenant signed.

In the third quarter there were 12 Big-Box deliveries bringing the year to date total to 25 buildings with a combined square footage of over 13 million square feet. There are still 35 Big-Box buildings under construction with 16 million square feet expected to be delivered to the market over the next 18 months..

Rental rates for Big-Box inventory remained at at $3.81, making this the eighth straight quarter where rates hovered in the low $3.80’s.

Absorption dropped this quarter to 1.8 million square feet. While signicantly down from last quarters amount of 6.5 million, the metroplex is still on pace to have a very strong absorption total of 14-15 million for the year.

MEET THE TEAM MEMBERS

Ward Richmond has over eleven years of experience specializing in industrial real estate, and has negotiated over 500 transactions while working in over 100 cities across the USA, Canada, and Mexico. Several publications have featured Ward for his expertise in this field including the Wall Street Journal, Dallas Morning News, and Dallas Business Journal. He also serves on Colliers International Industrial Advisory Board, and is a member of the Logistics & Transportation Solutions Group.

The Richmond team also includes Liam Logan, Cole Hooper, Brad Balke, Zack Rutland, and Kristina “K-Rod” Rodriguez. This high caliber team delivers next level marketing activities, market analysis, financial analysis, strategic real estate and facilities planning, site selection, and acquisition and disposition services.

WARD RICHMOND, SIOR
Executive Vice President

LIAM LOGAN
Senior Associate

COLE HOOPER
Associate

ON THE ROAD AGAIN

August 20-22, 2018: 3PL Value Creation North America Summit, Chicago, IL
October 4-5, 2018: Colliers National Industrial Conference, Chicago, IL

BRAD BALKE
Associate

ZACK RUTLAND
Associate

KRISTINA RODRIGUEZ
Client Services Specialist

MIKE OTILLIO
Research Director

The Richmond team is supported by Colliers International Research Team

SUBMARKET MAP

This is a new map that we created with our superb Colliers DFW marketing team in an effort to show DFW’s 8 key industrial submarkets. This map gives you a snapshot of the DFW metro highlighting landmarks, airports, intermodals, distribution hubs and manufacturing facilities for notable tenants and of course the Best BBQ joint each submarket has to oer. We will keep evolving this map and if you would like to discuss the DFW marketplace, please contact our team to dig in further.

CONTACT WARD RICHMOND AT:

Office 214.217.1201
Mobile 214.336.5757
Email ward.richmond@colliers.com

Read More

Success Story: Peak Season Fire Drill

September 25, 2018 Success Stories 0 Comments

KW International, Inc. is a total logistic company with unique business mind and brilliant people ...

Success Story: Peak Season Fire Drill

By Ward Richmond

CLIENT

KW International, Inc. is a total logistic company with unique business mind and brilliant people who strive to design and offer only the best logistic solution to its customers. We take pride in being a rapidly growing community of talented and special individuals, orchestrating every aspect of logistics to ensure we can be one-stop logistic solutions provider.

DETAILS OF THE DEAL

Challenge:
KW faced a mission critical challenge when one of their largest customers was forced to recall a massive amount of product.

Of course, this recall occurred in early December. If you are in tune to the logistics business, then you know that December is in the heat of “Peak Season” and most flexible space solutions are already in use do to increased consumer demand during the holiday season!

Nevertheless, KW required extremely flexible overflow space solutions as fast as humanly possible.

Strategy

The Richmond Team got to work. Cole Hooper, my right hand man, is known throughout America as having the ability to perform world class market studies, for extremely difficult requirements in record timeframe. That’s how we roll! Cole and I worked together to put together a killer market study of flexible space solutions while utilizing our relationships with landlords to dig up these tough to find options for KW.

Results

    • Our team provided a comprehensive market study of all available short term leases and sublet options that would allow KW the flexibility they required within 48 hours of receiving the initial request.
    • We worked with client to secure 50K SF within 8 business days of initial request.
    • Due to increasing capacity demands, we secured and relocated to another 80K SF facility about 30 days later.
    • Due to another unexpected surge in recall inventory, we worked together to secure and relocate into 205K SF facility while negotiating a 50% reduction in the first month’s rental rate to meet cost goals during this hectic overflow procedure.
    • We wound up working with one key institutional Landlord (can you guess which one???) to accommodate these flexible space solutions while negotiating a 4 month term. This term aligned with the end of Q1 and Q2 which provided an abnormally short term for our client while allowing the Landlord to attain stronger occupancy numbers for two consecutive quarters making this transaction a “Win-Win” for all parties involved.

CUSTOMER EXPERIENCE

“he Colliers team worked quickly and efficiently to leverage their local market relationships to find KW multiple short term, flexible space solutions in an expedient and professional manner.”

-DEAN DOKGO, VICE PRESIDENT -KW INTERNATIONAL

Please contact The Wolf directly to discuss further details related to this exciting project.


DFW Market Update – Q2 2018

August 16, 2018 Market Reports 0 Comments

August is here and the grass in my front yard is brown from the scorcher that swung through Texas this past July.

It’s a Scorcher Out There

By Ward Richmond

August is here and the grass in my front yard is brown from the scorcher that swung through Texas this past July. In case you did not know, a scorcher is several consecutive days of walking through warehouses when it’s 107° outside.

You know what else is scorching? The DFW industrial real estate market once again, is certifiably, on fire! We dipped down to sub 6 vacancy at an aggressive 5.9%. I will continue to say this every quarter so you don’t forget – 10% used to be the norm! According to our expert research team at Colliers International, the DFW industrial market experienced 5 Mil SF of Net Absorption this summer totaling up to almost 8 Mil SF YTD. I like to see it hit the 20 Mil SF mark every year so we need to pick up the pace but nobody can really complain. Seriously. This is semi-ridiculous, y’all! According to my leasing broker friends, they have never had so many leases out for signature in DFW in their careers. The time is now. Developers are doing their best to keep up delivering 7.6 Mil SF YTD falling just short of the 8 Mil in Net Absorption. Furthermore, these industrial real estate wildcats have another 25 Mil SF +/- under construction.

As previously mentioned, the beauty of this DFW industrial landscape is that construction and absorption are extremely well aligned during the longest and strongest bull market in commercial real estate history. This occurrence allows landlords to keep cashin’ checks and snappin’ necks but also provides tenants with some pretty decent options and competitive economics. I’ve found that comparatively working deals in markets like Miami, Seattle, San Francisco, Toronto, New Jersey, and LA (I can keep going, but I’ll stop) prove to be an absolute nightmare due to lack of new supply and extremely low vacancy.

Why is this happening? In my opinion, it is fairly simple: The rise of e-commerce and the Amazon effect. Today, I get my Casper mattress delivered – and installed – and then I get my old mattress removed and disposed of – by XPO logistics (I am a shareholder). My IKEA furniture is delivered by TForce Final Mile (I am a shareholder). My groceries are delivered using my SHIPT app. I do my shopping on Instagram and get my coffee (and coffee maker) and Halloween costume and pretty much everything else I can ever think of via Amazon (I am a shareholder).

When do I want it? Basically, I want it as fast as my customers want their market surveys. Yesterday! The only way to make that happen is to build some serious distribution infrastructure and that’s what we are doing! There is no doubt in my mind that 2018 will go down in the history books as one of the most fruitful years in the history of the logistics and industrial real estate business – in DFW and across the globe.

To get further inside my supply chain brain,
please check out my website and blog:
www.SupplyChainRealEstate.com

Q2 2018 TOP DFW DEALS

    • Mars Petco leased 1.5 Mil SF from Bandera Ventures landing just South of DFW Airport.
    • Black & Deckerleased 1.2 Mil SF at Alliance Airport from the mighty, helicopter ying, Hillwood. Once you step foot in their helicopter, it’s hard to say No!
    • Living Spaces subleased 858,000 SF in Grand Prairie from Restoration Hardware.
    • VM Innovations My buddy Matt Elliott slammed down a 416K SF repping Core 5 with VM Innovations adjacent to the UP Intermodal in Hutchins, TX.
    • Amazon keeps crushing DFW by allegedly renewing 920K SF with GLP (in the old Van Trust building) in South Dallas while simultaneously securing 395K SF with Port Logistics Realty just across I-45 in Wilmer, TX. Rumor has it, they have another 1 Mil SF working in South Dallas and another 1 Mil SF working on the tarmac at DFW Airport. Jeff Bezos, this is ridiculous. Please hire me.

Q2 2018 TOP RICHMOND TEAM PROJECTS

    • USA Shade – DFW Airport, TX – 173,110 SF – New Lease
    • Palmer Logistics – Dallas, TX – 157,467 SF – New Lease
    • TForce Final Mile – Irving, TX – 101,900 SF – New Lease
    • TForce Final Mile – Fullerton, CA – 100,000 SF – Renewal and Expansion
    • Indel Food – 601 National Drive – Ennis TX – 315,000 SF – FOR LEASE

Key Takeaways

Big-Box deliveries picked up in Q2, after an unusually slow Q1. Seven properties totaling 3.5 million square feet were delivered, almost double last quarter’s total. Deliveries YTD are 5 million square feet behind the half-year mark in 2017. Pre-leasing activity is still healthy; delivered properties were 60% leased as of quarter end.

Vacancy declined 0.6% from the previous quarter and is down 1%from the prior year. Sublet space on the market continues to be high at 1.5 million square feet. Expect vacancy to continue its downward trend for the rest of the year, as e-commerce demand is strong and deliveries this year are expected to total 15 million square feet, almost 6 million square feet less than 2017.

After a very slow Q1, net absorption returned to levels normal for this real estate cycle in Q2. Absorption totaled 4.5 million square feet, bringing the YTD total to 6.3 million square feet, just 8% slower than half-year 2017. Expect Big-Box absorption to hover around the 3-5 million mark for the next few quarters.

Average asking rates for Big-Box product were flat quarter-to-quarter and year-over-year at $3.83.

MEET THE TEAM MEMBERS

Ward Richmond has over eleven years of experience specializing in industrial real estate, and has negotiated over 500 transactions while working in over 100 cities across the USA, Canada, and Mexico. Several publications have featured Ward for his expertise in this field including the Wall Street Journal, Dallas Morning News, and Dallas Business Journal. He also serves on Colliers International Industrial Advisory Board, and is a member of the Logistics & Transportation Solutions Group.

The Richmond team also includes Liam Logan, Cole Hooper, Brad Balke, Zack Rutland, Renèe Castillo and Rachel Hendrix. They assist with market analysis, financial analysis, strategic real estate and facilities planning, site selection, and acquisition and disposition services.

WARD RICHMOND, SIOR
Executive Vice President

LIAM LOGAN
Senior Associate

COLE HOOPER
Associate

ON THE ROAD AGAIN

August 20-22, 2018: 3PL Value Creation North America Summit, Chicago, IL
October 4-5, 2018: Colliers National Industrial Conference, Chicago, IL

BRAD BALKE
Associate

ZACK RUTLAND
Associate

RENÈE CASTILLO
Associate

RACHEL HENDRIX
Client Services Coordinator

MIKE OTILLIO
Research Director

KARI BEETS
Business Development & Content Strategist

The Richmond team is supported by Colliers International Research Team

SUBMARKET MAP

This is a new map that we created with our superb Colliers DFW marketing team in an effort to show DFW’s 8 key industrial submarkets. This map gives you a snapshot of the DFW metro highlighting landmarks, airports, intermodals, distribution hubs and manufacturing facilities for notable tenants and of course the Best BBQ joint each submarket has to offer. We will keep evolving this map and if you would like to discuss the DFW marketplace, please contact our team to dig in further.

CONTACT WARD RICHMOND AT:

Office 214.217.1201
Mobile 214.336.5757
Email ward.richmond@colliers.com


Success Story: 3PL Power Broker – 150K SF Site Selection

June 19, 2018 Success Stories 0 Comments

Palmer Logistics is a dominant, family oriented, customer-focused Warehouse and Third Party Logistics (3PL) company.

Success Story: 3PL Power Broker - 150K SF Site Selection

By Ward Richmond

CLIENT

Palmer Logistics is a dominant, family oriented, customer-focused Warehouse and Third Party Logistics (3PL) company. Their numerous warehouses store a wide array of commodities including Hazardous Chemicals, Non-Hazardous Chemicals, Food Grade and General Commodities. This Houston, TX based logistics powerhouse offers specialized services such as customized reporting, labeling, repackaging, contract facility management and more. http://www.palmerlogistics.com/

DETAILS OF THE DEAL

Challenge:
Palmer engaged The Richmond Team to assist with a fast moving contract logistics project in early 2018. The Palmer team knew that they needed to act fast, deliver the best solution and execute like a badass wolf pack in order to successfully win a massive new account with a Fortune 500 shipper.

Strategy

The Palmer and Richmond team worked together closely to identify the best location in one of the largest distribution markets in the US to meet transportation, distribution, labor and economic requirements needed to maximize value for Palmer’s new client.

Results

    • Negotiated an aggressive deal structure equating to approximately $225K in savings versus initial lease proposal.
    • Negotiated flexible lease term and termination penalty reduction by greater than 50% resulting in approximately $215K in value.
    • The lease was negotiated in a matter of weeks allowing Palmer to execute with authority and meet tight timeframe and economic goals.
    • Tracked real time market activity while tracking the moves of competing 3PL’s looking to steal the client from Palmer. We became aware of the other (arguably, subpar) locations being promoted by the competing 3PL’s. This insider knowledge optimized our client’s value offering and maximized their ability to operate with certainty and generate massive value.

The Palmer and Richmond team worked hard to create massive value and dominated “Wolf Style” like we always do. Palmer won the contract and locked down the best space possible to service their new contract logistics client!

*Please contact “The Wolf” directly to discuss details!

CUSTOMER EXPERIENCE

“I hired Ward Richmond because I needed a fast-paced individual who specializes in solutions for 3PLs and could deliver a comprehensive solution that maximized site value and enabled me to close the deal. His market intelligence and relentless effort on this project undoubtedly helped us secure the business with this new, Fortune 500 customer.”

-Brett M. Mears, President, Palmer Logistics


DFW Market Update – Q1 2018

May 18, 2018 Market Reports 0 Comments

As we cruise into another hot Texas summer, I finally have had a moment to take a hard look...

SUMMERTIME, AND THE LEASING IS EASY

By Ward Richmond

As we cruise into another hot Texas summer, I finally have had a moment to take a hard look at the Q1 2018 industrial numbers and I must say they look fairly weak compared to how we finished up 2017.

According to our high caliber research team at Colliers International, the DFW industrial market is holding steady at a 6% overall industrial vacancy. As a friendly reminder, 10% used to be the norm when I started in the business back in 2006.

While we only delivered about 3 Million SF in new product last quarter, we have another 24 Milly currently under construction which puts us on track to keep up with the great 28 million SF that we delivered in 2017.

The bad news is that we only had a little over 2 Mil SF in net absorption. At this rate, Landlords have to be getting a little bit nervous if they want to keep up with the 24 Millorama SF in net absorption we had in 2017.

Don’t worry though, guys and gals. I know what’s really happening out there and frankly, these absorption numbers don’t mean jack. My team alone is working on well over 5 Mil SF of assignments in DFW so all of you Landlords better stay focused, keep your eye on the ball and get ready to get aggressive and win these deals so you’re not left out in the cold with the dogs.

The beauty of DFW’s industrial landscape is that construction and absorption have been extremely well aligned during the longest and strongest bull market in commercial real estate history. This miracle allows landlords to stay fat and happy but also provides tenants with some pretty decent options and competitive economics. Everybody wins! We just wrapped up a few projects in LA and trust me, being a Tenant in Dallas is a cake walk compared to begging and fighting for subpar space in SoCal!

I predict that DFW will see some monster deals start slamming down this summer and when I report back after summer break, I’m hopeful that leasing will be clicking back on track to bust through the 20 Mil mark by Christmas.

Dallas, TX forever, y’all. Let’s do this!

To get further inside my supply chain brain,
please check out my website and blog:
www.SupplyChainRealEstate.com

Q1 2018 TOP DFW DEALS

    • Tellworks leased a 723K SF building at 4101 Research Drive in Arlington, TX.
    • Best Buy renewed a lease at their 600K SF facility located in DFW Airport/Flower Mound.
    • Exel Global Logistics leased 409K SF at 13601 Independence Pkwy in north Fort Worth.

Q1 2018 TOP RICHMOND TEAM PROJECTS

    • Keller Logistics – Dallas, TX – 472K SF – Sale
    • Marine Harvest – Miami, FL – 106K SF – Build to Suit
    • Indel Foods – Ennis, TX – 315K SF – For Lease

Key Takeaways

Big-Box deliveries were significantly lower this quarter with only four properties totaling 2 million square feet delivered. The construction pipeline, while lower than mid-2017 is still optimistic with 20 million square feet under construction, of which 70% is spec.

Vacancy for Big-Box product rose 0.1%, with vacant space increasing by 354,115 square feet. An increase in sublease space on the market caused the overall rise in vacancy, as direct vacancy was down 0.6% from the previous quarter, while sublease space increased half a percent.

Net absorption was significantly slower in Q1 2018 than activity in previous years. Total absorption was 1.6 million square feet. This was significantly affected by negative absorption from Restoration Hardware subleasing 858,000 square feet at 1303 W Pioneer Pky and 310,000 square feet of vacated sublet space in E DFW Airport.

Average asking rates for Big-Box product in Q1 2018 were $3.84 NNN, with a 1.3% increase quarter-over-quarter. Since rates dipped in the latter half of 2017, rates were only up half a percentage point year-over-year.

MEET THE TEAM MEMBERS

Ward Richmond has over twelve years of experience specializing in industrial real estate, and has negotiated over 500 transactions while working in over 100 cities across the USA, Canada, and Mexico. Several publications have featured Ward for his expertise in this field including the Wall Street Journal, Dallas Morning News, and Dallas Business Journal. He also serves on Colliers International Industrial Advisory Board, and is a member of the Logistics & Transportation Solutions Group.

The Richmond team also includes Liam Logan, Cole Hooper, Brad Balke, Zack Rutland, Renee Castillo, and Rachel Hendrix. They assist with market analysis, financial analysis, strategic real estate and facilities planning, site selection, and acquisition and disposition services.

WARD RICHMOND, SIOR
Executive Vice President

LIAM LOGAN
Senior Associate

COLE HOOPER
Associate

ON THE ROAD AGAIN

Aug 20-22, 2018: Retail Delivery Connect, Ft. Lauderdale, FL
October 4-5, 2018: Colliers National Industrial Conference, Chicago, IL

BRAD BALKE
Associate

ZACK RUTLAND
Associate

RENÈE CASTILLO
Associate

RACHEL HENDRIX
Client Services Coordinator

MIKE OTILLIO
Research Director

KARI BEETS
Research Associate

The Richmond team is supported by Colliers International Research Team

SUBMARKET MAP

This is a new map that we created with our superb Colliers DFW marketing team in an e§ort to show DFW’s 8 key industrial submarkets. This map gives you a snapshot of the DFW metro highlighting landmarks, airports, intermodals, distribution hubs and manufacturing facilities for notable tenants and of course the Best BBQ joint each submarket has to o§er. We will keep evolving this map and if you would like to discuss the DFW marketplace, please contact our team to dig in further.

CONTACT WARD RICHMOND AT:

Office 214.217.1201
Mobile 214.336.5757
Email ward.richmond@colliers.com


Discipline Equals Freedom & The Art of Time Management

May 9, 2018 Life Coaching, Etc. 0 Comments

Let’s start this off with a quick story told by one of my favorite humans, Warren Buffet...

Discipline Equals Freedom & The Art of Time Management

By: Ward Richmond

Let’s start this off with a quick story told by one of my favorite humans, Warren Buffet:

“When I was sixteen, I had just two things on my mind – girls and cars. I wasn’t very good with girls. So I thought about cars. I thought about girls, too, but I had more luck with cars.
Let’s say that when I turned sixteen, a genie had appeared to me. And that genie said, ‘Warren, I’m going to give you the car of your choice. It’ll be here tomorrow morning with a big bow tied on it. Brand-new. And it’s all yours!’
Having heard all the genie stories, I would say, ‘What’s the catch?’ And the genie would answer, ‘There’s only one catch. This is the last car you’re ever going to get in your life. So it’s got to last a lifetime.’
If that had happened, I would have picked out that car. But, can you imagine, knowing it had to last a lifetime, what I would do with it?
I would read the manual about five times. I would always keep it garaged. If there was the least little dent or scratch, I’d have it fixed right away because I wouldn’t want it rusting. I would baby that car, because it would have to last a lifetime.
That’s exactly the position you are in concerning your mind and body. You only get one mind and one body. And it’s got to last a lifetime. Now, it’s very easy to let them ride for many years. But if you don’t take care of that mind and that body, they’ll be a wreck forty years later, just like the car would be.
It’s what you do right now, today, that determines how your mind and body will operate ten, twenty, and thirty years from now.”

Warren Buffet is the man. Am I right? His self-discipline is enviable and is known for saying, “We don’t have to be smarter the rest; we have to be more disciplined than the rest.” Keep in mind, the guy still eats breakfast at McDonald’s every morning which basically humanizes him so even if you are Warren Buffet, there’s always room for improvement.

One of my favorite podcasters and authors is retired United States Navy SEAL, Jocko Willink. Jocko’s latest book is titled Discipline Equals Freedom. This is a great read and has become my new mantra and go to hashtag.

Living a disciplined lifestyle is not easy and I’m nowhere close to perfect. Nevertheless, aspiring to continually make small, yet impactful and calculated adjustments to my lifestyle has served me well and the journey continues to be interesting, rewarding and fun!

MONDAY FUNDAY

For me, Monday is Game Day. Waking up on Mondays is similar to how I felt on Fridays when I was in High School and wore my football jersey to class and attended the Friday Morning Pep Rally. Packed with adrenaline and ready to kill it.

I wake up Monday morning in attack mode. If you wake up on Mondays feeling bummed out that you have to go back to work, change jobs. Do something you love. Life is too short.

Here is a snapshot of how I spend my typical Monday in an attempt to manage the precious commodity that is time and work like a beast to achieve my goals in the most efficient manner possible.

Don’t let “manufactured emergencies” weigh you down. Have a plan and stick to the plan. Time block your days to spend time on whatever it is you need to be doing to get to where you’re going!

4:45AM: WAKE UP EARLY

It’s the best. Trust me. If you are not waking up early, you are missing out.

5AM: MEDITATE

Take some time when you wake up in the morning and fill your heart with gratitude and meditate.

This is how I try to begin every day. Sometimes it’s easy. Sometimes it’s not.

I use the Headspace app for 10 Minutes and find it to be very helpful with creating and maintaining a meditation ritual.

5:15AM: YOGA

Once I spend a few minutes dusting off the mind, I dust off the body. I personally like to attend hot yoga class first thing in the morning. In my opinion, there is no better way to start the day.

7AM: ARRIVE TO OFFICE/ READ NEWS/ SOCIAL MEDIA

Driving in traffic is for lazy people. Don’t be that guy or gal. If you are driving in rush hour traffic on a consistent basis, this is a symptom of a much greater problem. As Tony Robbins would surely ask you, “ARE YOU MANAGING YOUR CIRCUMSTANCE OR CREATING YOUR F***ING LIFE?!”

The first thing I do is read the WSJ Logistics Report.. In my opinion, logistics is the backbone of the planet. If you read this report, it will tell you everything you need to know about the economy, real estate trends and politics. It’s the best.

Next, I post something on social media. This is an integral part of my marketing strategy. I try to post something meaningful, motivational or funny every day. A little funny goes a long way!

8AM: SALES MEETING

During this time, I methodically review and measure our team’s business development activities. We track cold calls, meetings, presentations, wins and closings. We also discuss market trends and ideas for improving our win rate. We sometimes crank up “All I Do Is Win” by DJ Khaled and I go on a 20 minute passionate rant about work ethic, discipline and Tony Robbins.

9AM: STRATEGY MEETING

I am a big believer in the Japanese philosophy of Kaizen – something Tony Robbins calls CANI – Constant And Never-ending Improvement.

Each week, our team meets to focus on any or all of these three things:

1) TEAM
2) MARKETING
3) EXECUTION

The purpose of our weekly team meeting is to work to improve these three crucial areas of our business. We analyze what we have and what we need. What are we good at and where can we beef up our game? We might spend a full hour talking about Execution or we breeze through all three in 20 minutes. It really depends on the day but we set aside an hour every Monday to focus on CANI.

10AM: PROSPECTING

As a commercial real estate broker, there is nothing more important than blocking your schedule to allow time for prospecting.

This is critical. I am a 12-year veteran and still methodically prospect for one hour every day.

If you are a rookie in this business, you need to set aside 4+ hours every day – minimum. If you are struggling in your career and feel lost, I can tell you right now what’s wrong: You are not prospecting. Get with the program.

11AM: EMAILS/ MEETINGS/ CONFERENCE CALLS/ MARKET TOURS

This is when the real work happens. Part Therapist/ Part Doctor/ Part Lawyer. Disclaimer: I am not a Therapist or a Doctor or a Lawyer. However, during the hours of 11-3, I sometimes feel like all three!

This is when I meet with people. This is when I listen to and analyze their problems. This is when I get on calls to strategize and problem solve and negotiate.

This is when we go to work and we execute on behalf of our clients to generate tens of millions in cold hard savings. 11AM-3PM is Prime Time, baby. I work hard during this time. I might easily talk to 50 people and fire off 100 emails. By 3PM, I am tired of hearing myself talk and think. Seriously. Dead.

3PM: LEAVE OFFICE

Leave the office before traffic starts.

You know the drill, get out before traffic begins. Driving in traffic is for Sheeple, not People. Don’t follow the heard. You will get slaughtered!

I try my best to never schedule anything after 3pm. Of course, the occasional meetings will come up, and I will return emails and hop on calls as needed but in general, when I can make it happen, I like to be done at 3pm. I am at my best in the morning. At 3pm, I’ve already been going hard for 10 hours.

Depending on the day I will work out again, mediate again or take a much needed power nap!

Rumor has it, fellow Woodrow Wilson High School graduate, Trammell Crow, took a nap every afternoon!

After a brief reprieve, I finish up strong and return all emails and phone calls by 5:30pm from my home office. I love finishing up my day in the comfort of my own home.

5:30: FAMILY TIME

I make my best efforts to switch my phone to airplane mode and put it in another room when 5:30pm rolls around.

This is extremely difficult for me and something that I work hard to do every day. I know that it is crucial to unplug, shift gears and focus on spending quality time with my wife and young kiddos!

9PM: CHECK EMAIL ONE LAST TIME, READ A BOOK & GO TO BED

This may not be recommended by Tim Ferriss or Tony Robbins, but given the nature of my job and my email addiction problem, I check my emails one last time at the end of the day to make sure something crazy didn’t go down while I was watching Barney with my daughter.

After a quick email check, I read a book. I typically read self-help books. They are the best. This helps me go to sleep with a new chunk of knowledge that I didn’t have when I woke up that morning. CANI! I read about 25 books per year. My 2018 reading list, so far, includes Tony Robbins, Tim Ferriss, Jen Sincero, Napolean Hill, Jocko Willink. Currently, I am reading The Art of The Deal by President Donald J.Trump! No matter what you think about DJMFT, read this book. It is Pure Gold.

Finally, I go to sleep. This takes me about 15 seconds!

Manage your time. It is the most precious asset that we all have.

Speaking of Donald Trump, let’s end this article with a great quote from another US President:

”If I had six hours to chop down a tree, I would spend the first four hours sharpening the axe.” – Abraham Lincoln

An abridged version of this article was originally published on the DCEO Commercial Real Estate Blog.


Time Kills Deals: Analysis Paralysis and Other Trends in Corporate Decision Making

April 3, 2018 Life Coaching, Etc. 0 Comments

In case you didn’t know already, my job is to provide Decision Makers aka Leaders with the intelligence needed to make corporate

Time Kills Deals: Analysis Paralysis and Other Trends in Corporate Decision Making

by Ward Richmond

In case you didn’t already know, my job is to provide Decision Makers aka Leaders with the intelligence needed to make corporate real estate decisions. It’s that simple.

As a whole, our team operates like a nimble and powerful little army to provide our clients with the innovative strategy, deep dive analysis and killer market intelligence needed to make rock solid decisions and execute these decisions with certainty in a timely manner.

I’ve found that at the core of all business strategy execution, there comes that critical moment in time when someone in charge AKA a Decision Maker has to make a decision. This may sound like an elementary observation to you. Don’t worry, I am aware.

One problem: Very few people in “Corporate America”, not to mention all countries around the world, and life in general, are able to – or like to – make decisions.

This is mind blowing to me. It sounds simple enough, right? I have always been a fairly decisive guy and only recently have I realized that my own natural ability to make decisions has undoubtedly helped me out in business and in life!

The inability to make a decision, however, is like driving a forklift into a wall.

Over the years, having worked on hundreds of transactions with businesses ranging from small family owned companies to Fortune 10 companies, I’ve found that powerful leaders know how to make decisions. I’ve also found that I absolutely love getting to work with these likeminded, badass, decision making professionals.

I considered calling this blog “Top 10 Ways To Make A Badass Decision” but there aren’t 10 things to put on the freakin’ list!

There are only 3 simple things you need to know when it comes to making a killer decision!

3 SIMPLE THINGS YOU NEED TO KNOW WHEN IT COMES TO MAKING A KILLER DECISION

Consult with a badass team of experts to gather needed intelligence to make your decision.

Thoroughly review the needed intelligence provided by the experts.

Don’t procrastinate! Overcome your fears and limiting beliefs and make a motherflipping decision!

Through my experience, I’ve determined that mediocre leaders have a tough time making decisions.

This leads to “analysis paralysis”. This leads to a giant time waste. Everyone in my industry knows the old adage, “Time Kills Deals”. Truth. Fact. Write it down.

The more time you spend procrastinating making a decision and causing unnecessary delays, the less value you create. This leaves a ton of money on the table and if you are a Decision Maker for a living, this behavior needs to stop.

INABILITY TO MAKE A DECISION = DIMISHINSHING VALUE

I am thinking about getting “Time Kills Deals” tattooed on my right arm so that I can quickly remind my valued customers that the inability to make timely decisions will result in massive inefficiencies and the potential loss of millions of dollars! Maybe even billions.

On my left arm, I will get “Shitty Lawyers Kill Deals”. I’ll save that for another blog post!

The inability to make decisions will always, inevitably lead to a total waste of precious time aka MONEY!

In my opinion, Procrastination and Fear are the number one and two causes of Failure. Action is King.

As Tim Ferriss says, “A person’s success in life can usually be measured by the number of uncomfortable conversations he or she is willing to have.” Yes- Making a decision is uncomfortable. That is why excellent decision makers get paid the big bucks.

Sometimes, excellent decision makers also make horrific decisions – but that’s OK. Believe me, I do it all the time. You just have to be able to learn from the bad decisions and try your best to not repeat them!

If you ever have the opportunity to visit with a super powerful leader or even a plain old badass of a human being, they will most likely tell you that the lessons learned from their worst bad decisions are gigantic contributing factors to their ultimate success.

When it comes to my own business and team, I will take a BAD decision over NO decision any day of the week.

You hired me to help with real estate strategy but I may as well be your head of HR because after we complete a project, I will be able to tell you who the true leaders are (and aren’t) within the organization. It’s easy. They all share one common trait. Can you guess which one it may be?

The leaders who give a stiff middle finger to Procrastination, smash the shit out of their Fear of Failure and Limiting Beliefs and assertively Make Killer Decisions based on Expert Advice are the ones who become Presidents and C-level executives and go by the name “El Jefe”. These BAMF’s take organizations to the next level.

They are the ones with the power. You know the ones. Name one influential leader who struggles with making decisions. You can’t. They don’t exist.


Lease Accounting Changes For Dummies!

March 21, 2018 Strategy & Solutions 0 Comments

As a commercial real estate expert, it is critical to have a base level understanding of the extremely...

Q & A with Ward Richmond & Marc Maiona

By: Ward Richmond & Marc Maiona

As a commercial real estate expert, it is critical to have a base level understanding of the extremely confusing and subjective changes to new lease accounting standards which have been created by the FASB & IASB and are about to go into effect.

Yeah, I’m already confused too. I attempted to write this blog on my own for about 7 hours one day and then I had to throw in the towel. I did what I usually do when I don’t know the answer to something: I brought in an EXPERT.

You don’t need to master this info but I am confident that this Q & A with lease accounting badass, Marc Maiona, over at LeaseCalcs www.leasecalcs.com will provide you with the right amount of intel to sound dangerous and pick up some simple actionable items.

In case you only want to read 1 question and not 21, I suggest you scroll to #21. Trust me, #21 is jam packed with some quick and easy actionable items related to lease negotiation and administration strategies that you can utilize to take advantage of the new accounting standards!

That being said, if you want to know everything there is to know about these changes, start right here. Good luck, my friends. You’re gonna need it!

NOTE FROM WARD: SOME OF MARC’S RESPONSES HAVE BEEN EDITED & PARAPHRASED BY YOURS TRULY FOR THE SAKE OF BREVITY. IF YOU WANT THE FULL DOWNLOAD AND HAVE FURTHER QUESTIONS, PLEASE CALL MARC!

Are FASB and IASB somehow interconnected?

Technically, no. However, there has been an effort by both accounting boards to converge their respective accounting standards over the past several years. The new lease accounting standards were supposed to be one area where they would achieve one unified set of standards. Unfortunately, they did not achieve that goal.

When do new standards take effect?

Public companies must adopt new standards by 2019 and private companies by 2020.

The collective FASB and IASB goal was to achieve consistency and transparency. Was this achieved at all?

In my opinion, the FASB and IASB did not achieve either goal. Their respective standards are very different, such that the exact same lease being accounted for under IFRS versus under US GAAP will have completely different impacts on the balance sheet, shareholder equity, net income and EBITDA results.

Which companies use GAAP vs those that use IFRS?

It generally follows where a company is headquartered, or, in some cases, listed (i.e., on the NYSE vs. FTSE, etc.). US headquartered companies almost always report their consolidated financial results under GAAP; whereas, international companies tend to use IFRS.

How is a “lease” defined? Is it the same under GAAP and IFRS?

The definition of a lease is the same under both standards and is essentially this: a contract that conveys the exclusive use and control of a defined asset with no reasonable right of substitution of the asset.

How is Finance Lease defined? Is this the same under GAAP and IFRS?

Under IFRS the definition is easy — every lease is a Finance lease under the new IFRS standards.
Under GAAP, a Finance lease is any lease that meets any one of the following 5 criteria:

What are the positives of a Finance lease? Is this the same under GAAP and IFRS?

From a financial reporting perspective, the one big benefit of a Finance lease is it provides a significant boost to EBITDA performance as compared to an Operating lease. Accounting for Finance leases is also a bit simpler than the new Operating lease model.

What are the negatives of a Finance lease? Is this the same under GAAP and IFRS?

Due to the differences in the way the Right of Use Asset amortizes under a Finance lease versus an Operating lease, a Finance lease will have a more detrimental impact on shareholder equity than the same lease classified as an Operating Lease.

Additionally, Finance leases are technically classified as “debt” on the balance sheet, while Operating leases are not (Operating leases are classified as operating liabilities).

Finally, the expense profile of a Finance lease on the income statement is “front loaded”, meaning the combination of interest expense and amortization expense is higher at the beginning of the lease term than it is at the end, causing differing impacts to net income as the lease term progresses.

How is an Operating Lease defined under GAAP?

Any lease that is not a Finance lease.

Why does IFRS not use an Operating Lease? Did they ever?

In short, the IASB decided the complexity of the Operating lease model was not worth the purported benefits.

What are the positives of an Operating Lease?

Operating leases have a better impact on shareholder equity than the same lease classified as a Finance lease. Also, the straight line expense profile may be preferred by some companies as compared against the front loaded profile of a finance lease.

What are the negatives of an Operating lease?

Primarily the complexity of the accounting — though with our software the complexity goes away.

What impact do the new standards have on Sale Leasebacks?

There will be major impacts on both the “sale” accounting and the “leaseback” portion as well. The biggest impact or change has to do with the timing of how any gain (or loss) on the sale is recognized. Generally speaking, under current standards, the gain is required to be deferred over the leaseback period.

Under the new standards, the gain must all be recognized on the date of the sale!

This greatly changes the P&L profile of sale-leaseback transactions and is causing some companies to look to accelerate deals to have them close before the new rules take effect. It is worth noting the sale-leaseback rules – both current and new – have a number of nuances to them which can yield different outcomes. NOTE FROM WARD: NOW IS THE TIME TO DO A SALE/ LEASEBACK. TAKE ADVANTAGE OF THESE BULLISH MARKET CONDITIONS AND ACCOUNTING CHANGES SIMULTANEOUSLY!

Do you think the world would benefit from one set of standards or is it good we have two?

I think it would have been beneficial if the FASB and IASB had met their objectives of having consistent and transparent lease accounting, globally.

In a nutshell, what is happening with this whole change to lease accounting?

This is the end of off-balance sheet lease transactions (with the exception of very short term leases.)

Which companies are affected by this change in the accounting rules? Is it just publicly traded companies?

Public companies, private companies, non-profits and governmental agencies. The standards basically impact any company that is require to issue GAAP or IFRS audited financial statements.

Does this just effect new leases?

No, this applies to any existing lease that has any part of its lease term go beyond the effective date of the new rules (including any comparative reporting periods).

What changes are you seeing in the way companies are negotiating leases in light of these new rules?

These changes are driven by whether a company is more sensitive to the impact the new rules will have on their Balance Sheet / Shareholder Equity results or whether they are more sensitive to their Income Statement results, or even more specifically their EBITDA results.

One of the more interesting changes – and one that virtually nobody predicted when these rules were first proposed in 2010 – is the shift to longer term leases for companies that are focused on the impact their leases have on net income and EBITDA performance.

What are the biggest traps with these new lease accounting rules?

I think there are two really significant traps, one being more “big picture” in terms of the accounting and the other being more “transactional” on new deals.

The “big picture” trap is thinking about this all as purely an accounting exercise. Any company thinking that the change in lease accounting standards is merely an accounting exercise will miss tremendous opportunities to improve financial performance, potentially in a material way.

The “transactional” trap is not knowing the true financial statement impact of any lease while it is still being negotiated.

The commercial real estate brokerage world has almost exclusively relied on discounted cash flow analysis as it’s “go-to” analysis to help tenants decide what deal is the better deal.

That may have sufficed in a world where virtually all leases were off balance sheet. But the irony is this: there is not a company in the world that reports financial results on the basis of discounted cash flows. Discounted cash flow analysis will not suffice going forward.

Most of our customers are Third Party Logistics companies (3PL’s). How does this impact 3PL’s contracts with their customers?

Depending on company goals, 3PL’s should definitely consider a shift from a true “lease” with their customers to a “service contract” when possible. This shift can potentially generate value for their clients and keep these transactions off of the books.

A true “service contract” should be doable in shared warehouses. That being said, a “service contract” will not provide their clients with the exclusive use, access and control of a defined area like a lease can provide.

How can real estate brokers assist tenants in dealing with these new accounting rules, particularly as new leases are being negotiated or existing leases are being amended? NOTE FROM WARD: IF YOU ARE JUST GONNA READ ONE Q&A, READ THIS ONE!

There are a lot of ways for brokers to assist tenants here!
First things first: Brokers need to understand what is important to their clients!
Is it the Balance Sheet? Is it the P&L? Is it the EBITDA?

For Balance Sheet focused companies

For P&L Focused companies:

For EBITA Focused companies (This seems to be a common trend among my customers!):

If a company is considering a Sale Leaseback or a Sublease, NOW IS THE TIME!

There is also a tremendous opportunity for brokers and their in-house lease administration teams to help tenants through the transition process by:

Keep In Mind: It is only at that point in time – during lease negotiation – where a company can have any influence over what the accounting outcome will be, and this is why it is so important for the brokerage community to be that knowledgeable resource for tenants.


Success Story: Selling The Beast – 472K SF Disposition

March 16, 2018 Success Stories 0 Comments

Keller Logistics Group, Your True Blue Logistics Crew is an asset-based 3PL solutions provider headquartered in Defiance...

Success Story: Selling The Beast - 472K SF Disposition

By Ward Richmond

Market Making sale of 472,234 SF Final Mile Logistics Center

CLIENT

Keller Logistics Group, Your True Blue Logistics Crew is an asset-based 3PL solutions provider headquartered in Defiance, OH with affiliate locations currently in six states. Their 3PL services are supported by the affiliates of Keller Freight Solutions, Keller Trucking, Keller Warehousing & Distribution, and Keller Packaging. http://www.kellerlogistics.com

DETAILS OF THE DEAL

    • Developed innovative marketing strategy by recognizing opportunity to transform an obsolete, oddly configured 1970’s distribution center into one of kind final mile distribution opportunity.
    • Rebranded property as “Final Mile Logistics Center” to change perspective of marketplace and take advantage of the “Amazon effect” related to ever increasing demand for customer delivery speed.
    • Created extremely competitive environment via targeted marketing to industrial users with final mile transportation needs (Amazon, WalMart, Geodis, XPO). Additionally, we targeted a wide range of investors including multi-family developers to leverage the rare 21.19 Acre urban location.
    • Provided our client flexibility to lease back on a temporary basis.
    • Identified 1031 Investor with close relationship to strong industrial user with a need for a large, rail served, final mile distribution center.
    • Market making sale price traded 162% higher than initial bank appraised value generating close to $10 million in value to our client.

Customer Experience

“Ward Richmond understands the 3PL business and has a network across the country. I believe that is the reason he is one of the top industrial real estate brokers in the country. We rely on Ward to  help solve our customers’ supply chain opportunities and provide them with logistics solutions that fit their needs.”

-Bryan Keller, CEO, Keller Logistics Group