With the prevailing condition of the commercial and industrial real estate market, there’s an outstanding chance for people with capital to acquire industrial properties well below the usual market pricing. However, if you’re planning to take advantage of the situation and acquire some property somewhere, there are various factors you should consider. Some of them are described below:
Location
Location is one of the golden rules in commercial and industrial real estate and especially when it comes to industrial real estate. Having a facility near expressways is important for you and the next user because it helps to cut down on transportation and other logistics.
Labor Supply
It’s very critical for your general operations to be a location close to the labor. Sometimes companies do relocate to premises that are in better communities just to experience huge losses in their force. So, procuring property near labor is important if you’re looking to buy an older lower clearance facility where the next user is going to probably be a production company.
Land
This is another important factor to consider when buying commercial and industrial real estate. Obviously, the more land with the property, the better. There are three significant areas land around the property can be used for:
- Car parking – This will be especially important to manufacturing companies that typically have numerous employees than a distribution center.
- Trailer storage – It’s important to check with local officials to get a grasp of the laws pertaining to this to ensure the restrictions are understood.
- Outside storage – Like in the case of the trailer storage issue, there’s a strong demand for outside storage for both manufacturing and distribution facilities.
- Building expansion – Having land on which you can expand your premises is very critical to numerous buyers.
Office Space
Office space is another critical factor that you should consider when buying a commercial and industrial real estate. Generally, 5 to 10 percent of the building’s total square footage is taken by offices. The percentage of office space can be important in how many users could utilize your building. Too little space is going to force the new user to come up with space in the building hence taking up room for their operations and adding costs to the acquisition for the buyer. Industrial premises with too much office space will make it hard for users to justify buying space that they can’t utilize.
Conclusion
The above are some of the key factors that play a significant role when it comes to procuring a commercial and industrial real estate that will bring good returns. Consider these and many more to ensure you make an informed decision.