Five factors to consider when buying industrial property
Category Newpoint Property
Investing in industrial properties can be a challenging process due to the variety of options available to you, making it difficult to decide which option is best for your business. By keeping a few factors in mind, you can find the ideal industrial property for your business.
To mitigate risks, it's crucial to thoroughly evaluate five key factors before making any investment decisions. These factors include:
1. Location
Choosing the right location for your industrial property is crucial to the success of your business. A top industrial location for your property can make a significant impact, especially when expanding your operations. It provides access to a larger pool of potential employees and ensures the safety and security of your valuable assets, such as machinery and other equipment.
Look for a spot that attracts your prospective business's clients. Research the many areas of the local market to identify the ones with the most significant potential for profits and the most demand. The convenience of this location to prospective clients is the deciding factor. The right site can significantly increase the value of the industrial property, making it an excellent long-term investment.
Another thing to consider is the property's location security. To protect valuable assets, ensure locks, alarms, cameras, and lighting are working properly and up-to-date on the property.
2. Accessibility in terms of transport
Access to critical modes of transportation, such as roads, railroads, ports, and airports, may drastically cut down on transportation costs, streamline the supply chain, and speed up delivery times. Factories near major thoroughfares save money on transportation, shorten transit times, and improve access to regional and national markets.
Moreover, parking is a major part of transportation, yet some factory owners ignore it. A parking lot is an invaluable amenity for employees and businesses, primarily if you transport goods daily. If you have a business that depends on transportation, this will affect how well your business runs.
3. Skill base in the area
When buying industrial property, it is crucial to consider the local skills base, since this can greatly affect the performance of the business. For factories and production lines to operate, companies need access to the right skills and workforce. Businesses may have to recruit workers from outside the local area if there is a shortage of skilled workers in the area.
There are many benefits to owning industrial property in an area that has a good skills base, including increased productivity, better personnel retention, and an edge over the competition.
4. Competition
Buyers of industrial property must take local competition into consideration. When there is a high concentration of businesses in the same area, there will be competition for customers/clients and resources. It can be challenging to gain a competitive edge in the market when establishing your business in an area where there are many similar offerings. As a result, your business may face higher costs as a result of increased competition for labour and resources down the line
5. Identify any unanticipated costs that may arise
Identifying and factoring in any unforeseen expenses when acquiring industrial property is essential. These expenses can include unanticipated repairs, renovations, or hidden environmental liabilities that can arise post-buying. Buyers should inspect the property and research any prior usage or ownership to avoid financial surprises.
You can minimise potential risks by seeking advice from professionals, such as property practitioners. In doing so, you will be able to make the most of your investment and ensure that it yields the best possible return in the future.
Make the right investment choice with Newpoint Property. Browse our industrial property listings or get in touch with our property practitioners today. Our experienced team can help you find the right property for your needs.
Author: Newpoint Property