How to Start Your Industrial Real Estate Search
When searching for the perfect spot to place your industrial business, industrial real estate terminology can make it more difficult to understand what to look for and what you need. The following concepts are imperative to understand before you start your research…
Location & Availability
In real estate, location is everything… and even more so in industrial real estate. Proximity to main roads and highways, rail spurs and waterways, and other geographic factors have a huge impact on industrial land desirability. Keeping logistics costs down is imperative, so considering proximity and traffic congestion are important, especially for truck-heavy industries.
Depending on your business, it is important to remember certain operational factors.
Zoning
The purpose of zoning is “to allow local and national authorities to regulate and control land and property markets to ensure complementary uses.” When considering industrial land, it is important to think about surrounding land. Industrial usage can produce unpleasant smells and sounds, making it undesirable to be right next to recreational and residential areas as well as certain other businesses.
There are specific areas in each city designated to industrial properties shown on a zoning map, which describe where these spaces can be constructed and operate, so that the activity on these sites does not disrupt businesses or residencies that might have otherwise been adjacently placed.
Market Value
When buying property, businesses may consider selling it later down the road. However, if the value of the property stays the same or even decreases, it can cause a financial loss. To prevent a risky investment by having a market analysis done before purchasing the land. In the end, you can make a logical decision when buying and selling your property.
Structure
Doors
Dock-high doors are placed above ground level, ideal for tractor-trailers to back up to for easy loading and unloading. More common, grade-level doors open at the ground level, allowing for trucks and other vehicles to pull straight into the space. Some spaces offer both dock-high and grade-level doors, while others may only have one. Considering what your business needs is imperative when looking at industrial spaces. Industrial spaces should be thought about in square feet and volume. Volume is important because it measures how much product the space will hold when stored vertically.
There are many ways to identify height in industrial spaces, with every space being unique.
Clear height is the usable height to which a tenant can store products on racking. This often does not reach the ceiling height due to light fixtures, rafters, sprinklers, ducts, etc.
Eave height is the height to where the vertical wall and roof meet.
Ceiling height is the height from the finished floor to the finished ceiling.
Clear Span
Many large structures require the use of columns. The space between columns, known as clear span, can affect industrial operations. Equipment, machines, inventory, and racks all need to fit inside the space. Buildings with small clear spans can be difficult to maneuver for large machinery and bulky product.
Office Space
Office space is needed in many industrial spaces, even those dedicated to storage and warehousing. When searching for the perfect industrial space, do not focus on the office aspect. Offices are easier to build out and modify within the industrial space and rarely take up more than 20% of the square footage. Make sure the warehouse suits your needs first, offices should be an afterthought.
Utilities & Amenities
Sprinklers
Based on your industry and usage, sprinklers are a very important safety feature. Wet, dry, and foam sprinkler systems are imperative to consider and should be an important part of your search criteria.
Electricity
Depending on the machinery or equipment used, more electricity may be needed to power your space. Phase 3 power may be needed.
