Five Tips to Keep in Mind when Buying a Warehouse
Retail is evolving and business owners understand the importance of being customer-focused to thrive and survive. Brick-and-mortar retailers that have exceptional customer service or experiential offerings will thrive. This transformation has to do with the rise in e-commerce.
For a few years now, industrial and logistics are the most attractive sectors for real estate investment. And big companies continue to force this evaluation forward. If you want to capitalize on this evolution, you must partner with a reliable industrial real estate brokerage and invest in or sell/lease warehouses. Also, make sure to keep the following tips in mind:
Pay Attention to the Location
The closer you are to wealth and big population centers, the better off your business will be. Also, you must consider proximity to highways and the biggest generators of commerce in the area such as airports, hospitals, seaports, and others. By working with a reputable real estate broker, you will choose an industrial property in the right location.
Ask about Big-Ticket Items
In terms of industrial property, you must ask about the roof and the HVAC or AC units. A property with an older roof will have a lower value than one with a newer roof. How big the roof is and what repairs are needed will impact the valuation. The flashing or edges are the first parts of the roof to break down, so keep an eye on them. Other problems can include standing water or perforations form equipment installations.
Think about the Type of Construction and Features
A concrete block structure is a common material used for building warehouses. But, concrete tilt-walls are the most advanced material being used today. They are prefabricated and predesigned to make it easier to tilt them up into place. In industrial property, you must give strong consideration to durability and functionality.
Types of Loading
Loading types include dock high and grade level. Dock-high is designed for bigger trucks like a 53-foot-long-semi-tractor trailer with 18 wheels. This type of loading lets trucks back up to the building and unload safely, efficiently, and quickly. Older industrial buildings provide grade-level loading because they are designed before contemporary trucks were on the road. But, these specialty companies and smaller operators that don’t use fleets of semis can use these buildings.
Clear Heights of the Ceiling
These days, sophisticated warehouse tenants demand tailed buildings to maximize the amount of product they can hold. In general, tenants pay for floor space n a per-square-foot basis. Thus, the taller the warehouse, the better value for tenants.