What to consider when buying or renting industrial spaceJune 27th, 2013 | Posted by in Commercial Property | News
Businesses that require industrial space are usually in it for the long term, so the decision for the location for your industrial operations shouldn’t be made in haste. There are a number of factors to keep in mind when buying or renting industrial space. Consider the following:
The ideal location for industrial property is determined by different factors to that of commercial property or office space. Industrial property needs to be located near to various accessible modes of transport such as road, rail, ports, and airports; most of which are on the fringes of major cities and towns. However, as a business owner, you’d also want to pick a location that is easy to reach for your employees, as well as easily seen by your potential customers – property exposure and visible brand frontage is also important. It will be difficult to attract clients if your premises are too far away.
Whether buying or renting industrial property, the amount of money you need to spend on it will be directly influenced by the location. Factories and warehouses that are further away from the city centre will be cheaper to rent or buy; while industrial space closer to attractive major routes and a denser population will be more expensive to occupy. What you spend on square metres, however, you’ll save in transport and advertising costs. If your industrial building is situated next to a highway, you’ll get more branding bang for your buck because your brand will be seen daily by thousands of commuters. Don’t just accept this as a given, though; do your research and determine the average rental and purchase costs of similar industrial space in the neighbourhood to conclude that you’re getting a good price.
Being in the throes of the green revolution, the age of the industrial building you want to occupy should also influence your decision to buy or rent there. Older buildings, though more economical, will tend to be less energy efficient and may cost a lot of money to “green” or retrofit. Newer buildings will be required to adhere to environmentally friendly standards and will be developed accordingly.
Business insurance will only go so far – it’s important to ensure that your industrial property has adequate security. Access control via booms, security personnel, check-in procedures and/or key-card access has become the standard for most businesses. Property fencing needs to be adequate and properly maintained, and it’s not too drastic to also sign on to armed response services in case of emergency.