When starting the process of looking for an industrial property for your company, it can be an eye-opening experience to realize all of the important considerations you need to make in order to select the right property. For the most part, it is relatively easy to generate a list of potential properties that may work for your business’s needs. However, these properties must be considered through the lens of the following factors: status of the property, the current and future costs associated with the property, and how well day-to-day operations will work for your business in the space.
Status of the Property
It is vital that all those seeking industrial properties consider the current status of the property in question in terms of whether the space is currently vacant and what renovations need to be considered.
- Is the Property Vacant or Currently Leased? This question is critical when considering acquiring a property, as spaces that are currently vacant can be turned around for a new client fairly quickly, while those that are still under lease may take quite some time before a new tenant can take over.
- Renovation Considerations. If the property needs some significant work to be done, this will prevent your business from starting operations until such time as when the building is viable for you.
Make no mistake, acquiring or leasing an industrial property is going to come with a cost. Two things to consider in terms of extra costs are: modifications that need to be made to the space and who specifically will be making these modifications.
- Modifications to the Space. The first and arguably most important question when it comes to property modifications for your business is: are these improvements absolutely necessary? If so, then you need to move forward and plan out how you will complete the modifications, how long it will take, etc. If not, you need to determine if it makes monetary sense to implement the modifications, or if the improvements would just be “nice to have” at this time. It is essential to differentiate between needs and wants.
- Who Will Be Making the Property Modifications? Is this responsibility going to fall solely on you and your business team? If so, you need to allocate a significant amount of time to this part of the process, which will take away from your other business operations. Alternatively, you may elect to appoint a project manager who would take the lead on this part of the process and free you up to focus on the other aspects of the business that require your attention.
Day-to-Day Operations Considerations
The dimensions of a building as it stands should not be understated. Depending on the specific industry, there are building requirements that can greatly improve day-to-day operations and efficiency. For example: if your business operates in such a way that you require high ceilings, ensure that you select a property that will accommodate this need. Entering into an agreement with a space that does not cover your business’s most basic needs will not produce positive long-term results.
Hi! We’re Josh and Jolene Baijot, the creators of this website. We’re also Commercial Real Estate Agents in Washington State. Thank you for taking the time to read this blog post. We appreciate your time spent on this site. You can connect with us on Facebook, Instagram, or contact us through this website.