When it comes to commercial real estate, there are many different types of properties to choose from. One option that you may want to consider is a warehouse. Buying a warehouse comes with a number of potential benefits that can be extremely advantageous for businesses. Here are a few reasons why you should consider buying a warehouse.
Large Space for a Small Cost
One of the main reasons for buying a warehouse is that you can get a lot of space for your money. When you compare the price per square foot of a warehouse to other types of commercial properties, such as office buildings or retail storefronts, warehouses are usually much more affordable. This is because they are typically located in industrial areas and are not as desirable as other types of properties. However, this also means that they may require more work to make them suitable for your needs.
Convenient Location
However, you may prefer a more industrial location for your business. In this case, buying a warehouse can be beneficial for businesses because it means that you’ll be surrounded by other businesses that can provide complementary products or services, or have infrastructure needed to help your business run more smoothly. For example, if you own a manufacturing business, being located near other manufacturers can provide you with access to suppliers and customers.
Warehouses are Very Durable
Warehouses are also advantageous because they’re often made out of solid materials like concrete and steel. This makes them much more durable than other types of commercial buildings, such as office buildings made out of wooden frame constructions. This means that they will be able to withstand the wear and tear of heavy machinery and equipment, as well as inclement weather, better than other types of buildings.
They are Highly Customizable
Another advantage of warehouses is that you can usually customize the interior to suit your needs. For example, if you need to store large equipment or inventory, you can easily do so by partitioning off sections of the interior with walls or partitions. Or, if you need office space for your business, you can lease out sections of the warehouse to tenants.
They are Multifunctional
Lastly, warehouses offer versatility and can be used for storage, manufacturing, office spaces and more. If your business needs change in the future, chances are that your warehouse will still be able to accommodate those changes. For example, if you start out using your warehouse for storage but then need office space in the future, chances are good that you’ll be able to convert part of the interior into offices without any major renovations.
Cost Efficiency Over the Long Term
While buying a warehouse may seem like a substantial upfront investment, it can prove to be more cost-effective in the long run. Owning the property allows you to avoid recurring rental expenses, which can add up significantly over time. Plus, warehouse ownership frees you from concerns about rental rate increases, giving you more control over your operating costs. As a long-term investment, a warehouse can provide stable value, and in many cases, its worth may appreciate over time, adding to your business’s assets.
Increased Control and Flexibility
When you own a warehouse, you gain greater control over how the space is used and managed. Unlike leasing, where you may be limited by the property owner’s restrictions, warehouse ownership allows you to modify the property according to your business’s specific needs. From structural adjustments to aesthetic changes, you have the flexibility to customize and utilize the space to its full potential. This control over your property can be especially beneficial if your business model changes over time, as you won’t have to worry about lease restrictions.
Tax Benefits and Financial Advantages
Warehouse ownership comes with a variety of tax advantages. In many cases, you can deduct expenses related to the property, including mortgage interest, property taxes, and certain maintenance costs. This can result in significant savings, reducing your overall tax liability. Additionally, depreciation deductions can further lower your taxable income, increasing your financial return on the property. For businesses with long-term growth in mind, these financial perks make buying a warehouse an attractive option.
Opportunities for Rental Income
If you don’t need the entire warehouse space for your own operations, you can consider leasing out part of it to other businesses, which can create an additional revenue stream. Many companies are looking for storage and workspace, especially in industrial areas. By renting out unused sections of your warehouse, you can offset some of the ownership costs, such as mortgage payments and property taxes, while still retaining flexibility to expand your business operations in the future. This opportunity to generate passive income can make owning a warehouse even more financially rewarding.
Alternative Options
While buying a warehouse has many advantages, it’s not the right choice for every business. If you’re not sure if a warehouse is right for you, consider some of the alternative options, such as leasing space in an industrial park or buying an office building.
Leasing Space in an Industrial Park
One option that you may want to consider is leasing space in an industrial park. This can be a good option for businesses that need to be located near other businesses but don’t necessarily need a lot of space. Industrial parks usually have a variety of different types of businesses, so you’ll be able to find complementary businesses located nearby.
Buying an Office Building
Another option that you may want to consider is buying an office building. Office buildings come with a number of advantages, such as being located in desirable areas and providing a variety of different types of spaces. However, they are typically more expensive than warehouses and may require more maintenance.
Schwarz Properties
If you’re in the market for buying a warehouse, be sure to check out Schwarz Properties! Our warehouses are highly customizable and can be used for a variety of purposes, such as storage, manufacturing, or office space. We have a large selection of warehouses for sale in prime locations, and we can help you find the perfect one for your needs. Contact us today to learn more!
