Listing an industrial property is relatively easy when compared to office buildings and retail buildings. It does however help if you have a checklist approach to inspecting the property when pricing and inspecting it. (NB – you can get our free industrial property training in ‘Snapshot’ right here)
The industrial segment of the investment property market can be quite lucrative from a sale and leasing perspective for commercial agents and brokers.
Industrial properties are in configuration and structure, and simple when it comes to investment and occupancy. It is an easy segment of the market to understand.
Local Industrial Changes
Industrial buildings and the associated precincts in any town or city are usually the first parts of the property market to be impacted by an economic change or business shift in the region. If your local economy is under change, it will likely have some impact on industrial property occupancy and investment. On that basis, you should be prepared to work with the people that can need your services and they are:
Choose your client type and understand what they need and how you can help them. Specialize services in each client type.
You can do more with this. There are some things for you to tap into locally.
Look for the factors of change so that you can work with both tenants and landlords through the region. Also, connect with the property investors as they seek to improve rentals and occupancy factors with their industrial investments.
Track Your Conversations
Activate your database, and record your progress in it. Research and organization will help you logically connect with the right people in the right ways over time. Your database will be important to the progress and allow you to remember the critical issues and the important people. Track your conversations and findings with qualified people.
So, what can you do here? Look for the peaks and troughs of industrial property activity from an ownership and investment perspective. Then establish the typical profile of an ideal client for you in both industrial property investment and tenant occupancy. That client profile can be your prospecting focus as you strive to improve your market share. When you know the client types that you are looking for, you can refine your prospecting strategy, conversations, marketing material, presentations, and meetings.
Questions and Answers for Review
So, let’s get things started when it comes to a question and answer process with clients and prospects. Consider the following questions as you talk to the right local people and prepare your industrial property checklist for working in this rewarding and active segment of the property industry:
- What are tenants looking for when it comes to property configuration, manufacturing, storage, sales, customer access, and staff services? There will be differences to look for when it comes to the different business types. Ask plenty of questions with every industrial inquiry that comes your way.
- What are the types of businesses that are showing greater levels of success in the greater region? Tap into the industrial businesses and the segments that are showing growth. Talk to the business leaders in each case and identify the locations of those industrial type properties and enterprises.
- Where are the industrial property precincts in your town or city that are more popular than others from an occupancy and industrial aspect? Most of your prospecting activity should be directed into the popular property precincts; track the levels of sales, leasing, rents and prices in each case. Know the precinct activities.
- Where are the ports, transport corridors, and sea links that may be required by industrial type tenants and businesses as part of their distribution requirement and strategy? The transport corridors will always be critical to industrial businesses as they strive to improve their supply capabilities and costs. Work the properties in the zones in and around the transport corridors.
- Building sizes and configurations will be important to many tenants and businesses as they consider how they can transact and grow future opportunities from the property. Some manufacturing businesses require specific property sizes and unique building types. Get to know the tenants before you consider the building requirement. The same can be said for those businesses looking for owner occupancy.
Market knowledge and local area information can help you refine your approach to clients and prospects. That local market knowledge can also help you negotiate and close ever more transactions from a base of local facts and results.
Industrial Property Checklist
Take this a bit further. Now you can drill down into even more facts relating to the industrial market segment and properties in your region. Here are some other factors of review to add to the industrial property checklist that you formulate:
- Land size and circulation of vehicles and people
- Site assessment for industrial property use
- Title details and encumbrances or easements on the land
- Levels of the land and soil stability
- Hard stand areas for storage
- Ratio of office space to warehouse
- Paving and coverage of surrounds
- Environmental issues and compliance
- Clear span versus columns in warehouse
- Access doors for warehouse
- Height of roof in warehouse
- Gardens and surrounds
- Loading docks for trucks and deliveries or dispatches
- Floor tolerances and quality
- Electrical installations and power capabilities
- Security (internal and external)
- Boundaries and fencing around the property
- Neighboring properties and businesses
- Fire protection devices and safety systems
- Ventilation and air conditioning capabilities
- Lighting in office and warehouse and surrounds
- Air conditioning for office
- Office space and use
- Car parking and circulation
- Signage for property
- Property use compliance
- Rental structure for the lease
- Lease terms and conditions
- Sale and leaseback opportunity
- First right of purchase (if required)
- Permitted use based on zoning
- Landlord works or improvements
- Tenant fit out requirements and configurations
- Building code compliance and safety
- Property condition and integrity
- Investment life-cycle for landlord
- Investment characteristics and comparisons locally
- Security bankers guarantees or cash bonds
So, there are some important things here to look for when it comes to working in this industrial section of the property market from a sale or leasing perspective. If this is the segment of the industry for you in your brokerage career, then identify the popular precincts, buildings, owners, and tenants that you can work with.
Put some system in your approach to the market and the location. Understand where you can work with the better buildings and the better clients. It takes time to build your market share through a consistent and ongoing prospecting model.
Build your relationships with the right people in the right way. Local area relevance will help you do that. Engage your clients and prospects regularly with information about rents, sales, listings, and precinct change.