Investors have noted for over three decades that warehouse space is often expensive and limited. Businesses often discover renting a shared space is more costly and challenging than purchasing a small building and letting an area out to a smaller company. If you are considering investing in a warehouse space, there are four things to consider before you sign the contract.
- Property Security
If you want to purchase a warehouse close to other buildings, be mindful of the property security. On the other hand, if you are considering a warehouse that stands alone, beware of security issues there as well. Adding fences, lighting, steel doors and motions systems are often costly, but they can protect your building from intruders or arsonists.
- Fire Code
Fire codes differ between cities, counties and states. However, all building codes demand warehouses have easy access to fire systems such as sprinklers, testing fire hydrants Orange County CA and fire extinguishers. If your tenant works with flammable liquids, you may also want to construct a steel room for storage of the combustible substances.
- Parking Lot
Parking lots can be costly to maintain. Weather can cause holes, soft spots and ruts. Before you purchase the warehouse, take a close look at the parking lot. You may even want to have an asphalt company do a comprehensive examination and report on possible problems. Repairing a large lot can cost thousands of dollars on top of the possible purchase price of your commercial building.
- Neighborhood
Yes, real estate is all about location, even for warehouses or small commercial constructs. If you want to buy something in an existing industrial area, expect to pay more than a building on the city’s fringe or a construct in a less popular area. Remember, location can make a difference if you decide to rent the building out to tenants, too.
Before you invest in any commercial building, make sure you understand the additional associated costs. Once you have all the facts, you can make the best decision for your portfolio – and your future.
