When buying industrial property, there are some important considerations to bear in mind. You’ll want to make sure the property is a fit for as many of your needs as possible. Here are some of the top items to consider:
1. Specific Business Needs
If you are buying industrial real estate for an existing business, consider what features you are going to need. Size, zoning rules, clear internal ceiling height, entrances and other features specific to your business are all things to look at. Will you require a dock? Internal or external? For a warehouse-type facility, how far apart can the internal pillars be and still allow you to conduct business? Prepare a comprehensive list ahead of time of all of the features you can’t do without.
The golden rule of real estate investment applies to industrial properties as well. Carefully consider the location of each property you view. Will it be easily accessible to employees, vendors and customers? The right location can help reduce fuel costs and draw in more business. Consider the neighborhood and how it might be down the road when you anticipate selling the property.
3. Labor Availability
Another important consideration is labour availability. Having access to the skilled labour your business needs is crucial to your success. Is the property accessible to the people most likely to work for you? If you are moving an existing business, will your existing employees be willing to change their commute patterns to accommodate the new location?
4. Taxes and Utility Costs
While you can have many of your supplies shipped in if need be, taxes and utility costs must be paid at the current local rates. Find out the property tax rate for commercial properties in any area you consider. Get an estimate of what your utility costs will be for heat, electric, water, sewer, garbage pickup and any others you’ll need.
5. Parking and Storage
If you anticipate needing storage for your business, be sure there is enough extra land around the property to accommodate this. Find out what you are allowed to store outdoors in the area as well; for example, some areas will not allow containers or large trailers to be kept outdoors in view of the street. You’ll also want to make sure there is adequate parking for you, your employees and any vendors, clients or potential business partners that might visit your facility.
6. Office Space
As a general rule, 5 to 10% of an industrial property’s total space will be office space. However, this percentage can vary and you’ll want to make sure there is enough for your particular needs. Of course, you can always add more later, but having adequate office space to get started will make the transition more seamless.
When buying industrial property, these are some of the key features to consider. Have your checklist ready as you tour each new property. Before you know it, you’ll be the proud owner of the perfect industrial property for your needs.