With industrial property sales and leasing, it is quite common for any agent to be undertaking a site assessment as part of preparing for the property listing. In doing so, you are endeavoring to understand the property from an ownership and an occupational perspective. You are trying to identify the strengths and weaknesses that the site will have for both occupants and investors.
Some properties are less favorable than others when it comes to occupancy. That will then lead to challenges when it comes to filling a vacancy or finding a tenant. Industrial properties most particularly require certain considerations and factors of site assessment, and that is before the lease marketing campaign has commenced.
Here are some ideas to help you in site assessing those industrial properties that you are to sell or lease. You can add to this list other location factors unique to your town or city:
- Location – Certain locations are better than others. Consider the access to the property, transport and road facilities, services and amenities, proximity to other businesses, and the interaction that may be required with ports, rail-heads, and shipping terminals.
- Property improvements – The improvements constructed on the property will be of a certain condition and serviceability. Presentation has a lot to do with attracting property inquiries and closing on negotiations. Look at the improvements from the perspective of a potential tenant or new property owner. When a property presents poorly, it is likely to frustrate the negotiation in one way or another. In assessing the existing improvements make sure that they comply with zoning regulations for the location and the existing occupancy certificate for the building. Check out any orders or notices that may apply to the building or the property that may have an impact on occupancy and property use.
- Risks and liabilities – Today we have plenty of challenging issues to consider when it comes to property use. Heritage, environmental, and structural issues are three of the most important ones to look into. If any of these issues exist, it is likely you will need specialist consultant involvement and the appropriate engineering reports. That should be undertaken at the cost of the property owner.
- Topography and soil condition – Understand the difficulties that can arise with the slope of the land, the topography, vegetation, soil integrity, storm-water run-off, and natural land layout. Problems associated with any of these categories can be expensive to resolve. They can place a significant burden on the property owner or investor when it comes to construction or property use.
- Land title – The title for the land should be fully investigated together with any occupancy orders, notices, restrictions, leases, and any other documents that apply to occupancy or property use. Other things to look for will include rights of way, encumbrances, and access rights.
- Property attributes – Consider the property from a use perspective. That will include the services and amenities, roadway access, car parking, lighting, security, signage, and air conditioning. How convenient will the property be for the occupant to transact business and attract customers?
- Neighboring properties – Some adjoining properties will place pressures on neighboring owners and businesses. That could be for a number of reasons including truck access, noise, dust, and security, environmental all chemical toxicity, and drainage or water run-off. Assess neighboring properties for the problems that they can present to the region and other owners nearby.
So there are a number of things to be considered when it comes to the site assessment for an industrial property. When listing and industrial property, look at the big picture taking into account the local area, other property owners, and other businesses. Look at the strengths and weaknesses in each case.