The industrial property market is normally quite active in most towns or cities at any time, and in any economy. The reason being is that it serves the ‘base line’ of business and economic activity for the community. All other property types are higher up the chain of investment and occupation; all other property types are considerably more complex. Industrial property market is a lot simpler to understand and work with than say office or retail property; that is from the point of development, construction, leasing, ownership, and investment.
Given all of these facts the industrial property market is one that is easier for an agent or broker to enter into and work from as a ‘specialist’. The factors of sales and leasing are easier to understand and implement; it is simpler to get into that section of the market and create leverage in market share.
‘Entry level’ property investors also like to stay on the ‘simple side’ of property ownership, and ‘industrial property’ certainly allows that to happen. There are three of the special factors of an industrial property that are worth looking at when, as an agent, you are preparing for the listing and marketing process:
- Business Growth Corridor or Location – They say that ‘location’ is everything in property ownership, and that is certainly the case with industrial property. The location must suit the use of the land, and support tenant occupation, so the zoning of the land will be of prime concern to ensure that no restrictions apply that could limit tenant and business occupation. You can get maps and plans relating to zoning from your local planning office.
- Ports and Highways – Access to the local highways and ports or transport routes will be important for many industrial tenants. Ease of access is required to bring in raw materials or goods to the property, as well as ‘ship out’ the finished product to the end user or customer markets. For this reason look at rail, road, and air transport routes and services that may suit property use and tenant activities.
- Services and Amenities – The industrial tenant today is far more selective and demanding when it comes to property services and amenities. Water, sewer, electricity, drainage, communications, telephone, internet, and gas may all be factors of attraction when it comes to property occupancy. Within each category of service there will be capabilities to be understood and investigated; for example it may be that the electricity service to the property could be of ‘three phase’ or ‘high voltage’ capability. It that is the case it could suit a ‘manufacturing’ type tenant.
When all of these factors ‘align’ for the property to be used ‘industrially’ then you can look at the property configuration and fixed improvements, and then go a lot further into the ideal tenant or buyer as the case may be. That then helps you construct the correct marketing campaign and attract good inquiry.