5 tips for buying or renting industrial warehouses
Category Industrial Property News
It's an exciting time when businesses get to the point where they have to expand. It's every industrial business owner's dream to have a space of their own, which they feel is suitable for their chosen industry. However many new, small to medium-sized industrial businesses are unaware of the reality of owning their own premises. They should know that in any situation there are various pros and cons. Here at API Property Group, we want our clients to make the best possible decision when opting to buy or rent industrial property. This is why we have given you 5 tips to help you make the best possible decision moving forward.
Renting vs buying
Laying down a hefty sum of money is obviously worrying for any size industrial business. However looking to buy can sometimes payoff in the long run, as rentals can fluctuate depending on who owns the property and varying economic factors. If cash flow is an issue, usually larger deposits and start-up costs are prevalent so this is something to take into consideration. With this said, if you own your own property you can adjust and maintain it as you see fit, without consultation of a landlord.
Transportation is important
Although some employees will have their own transport, it's also important to acknowledge the fact that being close to key transport infrastructure is vitally important for those who don't. This will also improve the status of your operation. For example property prices are dramatically affected by key transport development such as the Gautrain in Gauteng region of South Africa.
Criteria for being able to buy industrial property
One cannot just merely buy industrial warehouse property. There are certain critical criteria which go into something of this magnitude. One needs to, at least, have the following in check if they wish to buy or rent industrial property; 1. Your credit needs to be clear 2. You have to have audited records and certified accounts, plus your current management figures 3. You will need to supply your bank statements for at least 2 months 4. You will need to supply information on your assets and liabilities 5. One will also need to supply cash flow projections and extensive business plans.
Building new structures as opposed to rehabilitating old ones
When one wishes to rehabilitate an existing structure, you will need to take into consideration that it will likely cost a lot more than originally planned. Experts have sighted that renovations can sometimes be over 20 percent more than expected. This can add a lot of frustration to first time buyers. It can sometimes be surprisingly more cost-effective or less of a hassle building the structure from scratch, as first time buyers will know exactly how much everything will cost with little to no extra costs.
Is there sufficient parking and space for abnormally sized vehicles
This might seem like an obvious requirement, however, if you do not choose a sufficient property with ample parking, this will be highly frustrating for various reasons. You will lose credibility with potential clients. Also the size of the property is highly important, many industrial businesses utilize abnormally sized vehicles and this can make or break your industrial business if you don't make provision for such vehicles. These kinds of vehicles include haul trucks, ballast tractors and heavy haulers.
Always consider expansion
You might run a small operation but expansion is sometimes inevitable. This is something that needs to be taken into consideration. You don't want to have to move after a few months of being in a particular warehouse. This will only make life harder and more frustrating.
These are just some of the important factors that come into play when one is looking for industrial spaces or warehouses. Luckily API Property Group's experienced brokers have all the knowledge of their particular areas. Get in contact with one of their brokers today and get the best advice when it comes to industrial warehouses and industrial parks.
Author: API Property Group
