New vs. existing industrial properties: What's the better buy?
Category Newpoint Property
Choosing between new and existing industrial properties is a significant decision that can profoundly affect your business. To make the best choice, it's essential to thoroughly weigh the advantages and disadvantages of both options.
In this article, we'll examine the unique benefits and drawbacks of new and existing properties,, to help you understand which type of property is best for you.
Why existing industrial property?
Existing properties are often more cost-effective compared to new ones. They're usually situated in established neighbourhoods with convenient access to highways, other businesses, and amenities.
Advantages of buying existing property:
- Savings on costs: Buying an existing property is typically more budget-friendly compared to building a new one because It is relatively easy to estimate the purchase price and any potential renovation or customisation costs. It's a huge plus for property buyers who want to know precisely what they are getting into.
- Having already in place Infrastructure: Many existing industrial properties are already equipped with essential infrastructure, including reliable access to water and power.
- Knowing what you're getting: When looking at an existing property, you might have a greater sense of assurance that what you see is what you'll receive, and you're also less likely to be subjected to unfavourable shocks.
Disadvantages:
- Maintenance: Existing properties might require more frequent maintenance due to natural deterioration. For instance, a roof could require repairs or replacement, and the drainage and electrical systems may need to be updated for optimal functionality.
- Upgrade on essential parts of the property: Depending on their operational needs, warehouses may need renovations or upgrades. For example, a factory may need to replace outdated machinery or install more efficient lighting to improve operations and reduce energy costs.
- Buying price of property: The cost of industrial properties can fluctuate based on factors like location, size, infrastructure, and market conditions. In prime areas like Johannesburg, where there's a high concentration of logistic parks, demand can push prices higher.
The best thing about a new property?
Investing in a new industrial property is the best option to take advantage of the most up-to-date amenities, such as customisable and safety features. The need for immediate repairs and upgrades is also reduced because new properties are constructed with new materials and modern technology.
Advantages of buying new industrial properties:
- Modern standards: Opting for a new property comes with the advantage of incorporating cutting-edge technologies, sustainable practices, and elevated safety standards.
- Less maintenance: It is equipped with contemporary materials, which cut down on the frequency of maintenance and repair needs, which can save a lot in terms of cost.
- Fitted with the latest safety features: New properties typically come with the most up-to-date safety features. For example, if you're looking at a recently built chemical manufacturing facility, it may have advanced fire safety systems and designated areas to contain chemicals.
Disadvantages:
- Higher costs: You'll have to shell out a larger sum of money upfront compared to existing properties. It can range to various aspects like installation of essential services, e.g. water and electricity in some parts of the warehouse. Costs can escalate with custom needs, such as specialised facilities or high-tech installations.
- Limited infrastructure: New properties are often situated in less well-known areas, which can have transport challenges. These locations may not be ideal for employees or a lack of easy access to ports.
Are you in the market for new industrial space?.Our property practitioners at Newpoint Property are here to help you find the ideal property for your business. Browse our property listings or reach out to us today.
Author: Newpoint Property