Buying an investment property such as a commercial warehouse can be a daunting prospect. Whether it is an old warehouse for sale, converted or brand new one, it involves a large outlay of money and comes with its own risks and rewards.
Investing in a commercial property for sale as opposed to residential property can be a little trickier and you must consider some other variables to ensure your money is well spent and you’re likely to see a return on investment.
In this article, we set out some of the key considerations concerning the purchase of a commercial warehouse.
Commercial Warehouse Space
Commercial warehouses are used primarily to store products, inventory, pallets and boxes, machinery, offices, and other elements that enable it to operate.
A warehouse which stores, packs and ships goods can also be considered a commercial warehouse space. If you however need to manufacture products to run your business, you might want to consider an industrial warehouse building to accommodate your equipment.
Warehouse Location
In general, it is a good idea to ensure your warehouse is located close to major transport links, arterial roads, highways, ports, and cargo docks.
Perth has 4 distinct industrial areas which all offer different benefits dependent on what you’re looking for and the profile of your business. Follow this guide to commercial real estate investment to find out more.
Occasionally, a small factory in non-industrial area might be a great bargain and you could possibly convert it into a commercial warehouse for sale if the need arises.
Access to The Warehouse
Easy access to the warehouse is of paramount importance. In general tenants want a warehouse they can work in, but they would not like to feel isolated far away from the city.
Make sure there is enough land for extra storage and sufficient parking available. Depending on planned operations, an external loading dock might be required.
Height of The Warehouse
The height of the warehouse known as the clear height plays an important role in determining storage space. Clear height can be defined as the height of a building from the floor to the bottom of the lowest hanging item on the ceiling.
These days, due to ongoing efforts to increase warehouse efficiency warehouses come with a clear height of 30 to 36 feet as against the earlier 12 to 24 feet norm. This may be especially important to for investors looking for a commercial warehouse for sale that can be efficiently utilized or has the potential to expand allowing to build extra storage room.
Security of The Warehouse
Another consideration worth looking at is the security of the warehouse because safe buildings will fetch a higher price than the ones that are not and will be more likely rented out.
It is therefore imperative to have ongoing surveillance and CCTV cameras to prevent unwanted theft or damages to supplies and products in a commercial warehouse. Integrating building access control into security plan is ideal for permitting and restricting access to warehouse premises.
Office Space
As a rule, about 5% to 10% of the total square footage of the warehouse should be dedicated to an office room. Instead of building costly walls, you may want to install screens or partitions to create a dedicated office space.
These days warehouse workers appreciate a work environment that offers that industrial feel in a light and airy office or showroom. Converted warehouses for sale offer funky open plan spaces with high ceilings and exposed metal frames.
A good commercial warehouse real estate agent can help you make a more informed decision. Your agent should have an in-depth understanding of selling, renting, leasing, or buying a commercial property including old and converted warehouse space from start to finish, so they can advise you on that process.
Ross Scarfone Real Estate has extensive experience and knowledge of the property market in the Southeast Perth region. They have been helping businesses thrive for over 30 years by leasing commercial real estate, including brand new, old and converted warehouses, in an ethical and professional manner.
Perth Commercial Property Report for 2021 There’s no doubt that the uncertainty of 2020 left its mark on the commercial property market across the country. We were lucky here in Perth, where the health effects of the pandemic were barely a blip and hard borders kept our state’s economy ticking over.
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