The Best Location For Your Industrial Rental Property
When it comes to choosing your industrial rental property there are many factors that can make one location preferred over another. Size, cost, utilities, and renovations are only a few of the numerous items that go into this type of decision. Many believe, including real estate investors, that location is the most important factor.
But, what makes a location THE BEST property for your business? There are numerous influences that can be applied to choosing the ideal location for your new industrial rental property.
The most important factor in choosing your industrial property is zoning. Industrial real estate is often found amongst what many people would consider “bad” locations, such as, those that are rundown, heavily industrialized, in the middle of nowhere, and noisy locations. Because of their lack of appeal toward homeowners, these types of areas are zoned for industry. If the location that you are looking at is not zoned for industrial use, you will have to discuss and file a claim with the city to get the property rezoned. This process can be unsuccessful and tedious, which is why many investors often find property that is already zoned for their business intentions.
As stated above, many times industrial locations are in regions that are not ideal for home residences. Areas near airports, railroad tracks, and freeways are not desired by homeowners, therefore are left for industry to make camp. But, for industrial rental property owners, these railroad track have the potential to become apart of a multimodal distribution network. Flight paths also mean you have the means to make shipments leave sooner!
Low Operating and Investment Costs
Increasing ROIs is always one of the main goals of new manufacturing and industrial business companies. In order to ensure that you maximize your return on investment, choose a industrial location that requires minimal cost to upgrade and maintain. This would be an essential conversation to have with the property manager before leasing an industrial property.
Also consider going with an industrial property over a commercial location. Industrial properties are often larger and cheaper, even though commercial locations may have a better surrounding location.
Flexible Industrial Space
Because of the large push toward an e-commerce platform, industrial space is going through changes in layout, size, shape, and design. If you are planning on making changes within your lease term, look for an industrial space that can be rezoned or reused for multiple purposes. Having this flexibility will allow you to make changes when your business plan allows.
Markets with Low Vacancy Rates
In today’s current economy, industrial vacancy rates are at an all time low, sitting right around 5%. While searching for a rental property, find an industrial property that has a low vacancy rate. A low vacancy rate shows the value of the property. An area or property with a high vacancy rate may have a high amount of maintenance or hidden expenses involved. Be sure to ask the property manager of the properties rental history to receive more of an insight into this factor.
Are you searching for industrial property to rent? Schwarz Properties has industrial and warehouse space for rent within the Asheboro, Greensboro, and Lincolnton area.