Qualities that Add Value to Industrial Real Estate

Categories: Industrial

It is important that before purchasing or building an industrial building that you consider how versatile the building is or may need to become.   This is important consideration in protecting future resale value.

Typically when a building is built or purchased, a business owner is so focused on the design of the building for their own business and perhaps not with how it can be adapted to other business uses.  They do not realize that if they look for these qualities with an existing building or the design of one it will help them add value when they sell the property. Gerspacher Real Estate Group has a great inventory of industrial real estate and we understand what qualities are in demand.  Here are a few qualities that add value to industrial buildings:

  • Ceiling Height-  We recommend buying property that has ceiling clears that are 18’ or higher, preferably over 20’.  The higher the better.   This height difference increases the number of uses that can function in the building.  The increase in the number of uses drives the demand of the building which increases the chances of retaining and or increasing the value. 
  • Location- Highway access to major cities are crucial to delivering product to  many customers.  If real estate visibility is important to your business  and you can acquire a site to build or buy for a little more money, demand for that site will be stronger versus an industrial park.   There is always a better chance of the building appreciating in value if it has better visibility  
  • Docks & Drive In Doors.  These are both good to have even if a business doesn't necessarily need them.  In our experience,  if a building doesn’t have one of them, then it will decrease demand for your building by as much as 50%, depending on the size of the building.   If you have both docks and drive in doors then you certainly will be able to make a deal work with a higher volume of users.  Also keep in mind, docks are much more expensive to add later then prior to building the structure.
  • Power-Every business has different needs when it comes to power.   It is always nice to see a minimum of 480V 3 Phase with 400 amps.  This amount of power provides versatility to many different users.   If you have the ability to buy property near a transformer, then it makes the property unique in the market place.   Access to large amounts of power could be the reason why some one else would want to buy the property.
  • Land for Expansion- If there might be a need for expansion at some point, then consider an industrial property that has additional acreage.  Remember, it is  typically much more expensive to move a business than expand at the existing location. 
  • Office Space- While most true industrial spaces do not require much office space, it will be important down the road to have some, a good start is +/-10% of the total space.

Of course all of this depends on budget, and all investments require this consideration, and concessions may need to be made. Please call any of our agents if you have questions about what clients are looking for in today’s industrial buildings. (330) 722-5002

Troy Gerspacher, CCIM
Real Estate Broker & President, Gerspacher Real Estate Group |  Contact Info