Things to Consider When Looking for Industrial Space
When it comes to searching for the ideal industrial space, the journey can be an intricate one. Whether you are an experienced player in the commercial real estate field or a business owner on the cusp of expansion, numerous factors should be considered during your search. Finding the right industrial space can be a game-changer for your business, impacting operations, brand identity, and future growth.
In this comprehensive guide, we will delve into the key considerations that should be at the forefront of your mind when seeking the perfect industrial space. These insights will empower you to make informed decisions, ensuring that your chosen space aligns seamlessly with your business goals and operational needs.
- Accessibility: The accessibility of your industrial space is paramount. Consider how easily your employees, suppliers, and clients can reach it. Proximity to major transportation hubs, highways, and logistical routes is vital. Additionally, it is important to understand the locations of your key stakeholders. Ensuring convenient access for all parties involved can streamline operations and enhance efficiency.
- Parking: Beyond the interior of the industrial space, the parking facilities deserve careful evaluation. Take a close look at the number of parking spaces allocated to your business, their location, and the overall condition and security of the parking area. A well-maintained and secure parking lot, as well as a secured yard or trailer parking facility is crucial. This will smooth the flow of your day-to-day operations. It is imperative to consider the needs of your employment base as well as the customers and vendors that may be visiting your facility.
- Nearby Amenities: Just as with office spaces, the amenities surrounding your industrial space can add immense value to your business. Consider the convenience of nearby suppliers, manufacturing facilities, and supporting services. Easy access to these amenities can optimize your operations and productivity. Close proximity to retailers that can serve your employees can play a part in positive morale.
- Ensure that the properties you are evaluating fall within the suitable industrial zoning district or have the potential to acquire a Special Use Permit. This ensures compliance with regulations and suitability for your business needs. Various restrictions and permitted uses are contingent upon the foundational zoning code. These codes range from Business Parks to Heavy Industrial zones.
Size and Layout
- Space Requirements: Conduct a comprehensive assessment of your business’ unique space requirements. Account for the specific needs of your industry and the operational culture. Ensure there’s ample room for your machinery, equipment, and storage requirements while maintaining accessibility and safety standards. The warehouse clear height can limit or expand your racking capabilities.
- Flexibility: Industrial space needs can evolve over time, so it’s prudent to choose a space that can adapt to your changing requirements. Roll-up door size, available power, and column spacing will be important factors as the business changes and required equipment may change. Open layouts often offer more flexibility than confined spaces. It is imperative to consider that some built-out spaces can allow for repositioning of walls. Furthermore, consider locations that offer adjacent spaces for potential expansion as your business grows.
- Production Areas & Common Spaces: Plan for designated production areas that accommodate your operational processes. The number and size of these production areas will depend on your industry and production volume. Additionally, allocate space for employee collaboration, meetings, and breaks without disrupting the workflow.
- Utilities and Connectivity: A reliable infrastructure is the backbone of industrial operations. Verify that there is consistent access to essential utilities, including electricity, water, and internet. The potential to upgrade the capacity of these services is worth consideration and investigation. Evaluate the condition and construction of the building, HVAC systems, grade level doors, truck wells, and other amenities that contribute to your employees’ comfort and operational efficiency. In today’s industrial landscape, modern connectivity and utilities are essential.
Lease Terms & Conditions
- Before making your final decision, it’s crucial to thoroughly comprehend the lease terms and conditions. Consider the type of lease (Modified Gross, NNN, etc.) and the expenses included in the lease agreement. Evaluate the lease duration, buildout costs, renewal options, and other clauses. Collaborating with an experienced commercial real estate advisor is highly recommended, as they can expertly navigate the intricacies of industrial leases.
- While meticulous planning is essential, unforeseen circumstances can still arise. Having a well-thought-out exit strategy for your industrial space can provide flexibility and adaptability in a dynamic market. Options such as renewal options and subleasing can offer a safety net should your business’s needs evolve.
Selecting the ideal industrial space transcends the act of merely finding a location to operate—it’s about discovering a space that maximizes efficiency, boosts brand recognition, and bolsters your business objectives. With these key considerations in mind, you are well-equipped to make an informed decision that will play a pivotal role in shaping the future success of your business.