1. The Timeline
Assuming you know when your current lease expires, a balanced market means a timeline of roughly six months to a year. If you’re leasing, it’s a good idea to start looking at least six months out from lease expiration. That way, you’ll have time to begin familiarizing yourself with the local market, identifying options, building a short list, making an offer, negotiating and finalizing the transaction, and then transitioning from the old space to the new space. Complications like HVAC and/or electrical modifications, plus other tenant improvements, will of course push this timeline.
In the event that you’re buying industrial real estate, the process needs additional time for due diligence, arranging and finalizing financing, and closing on the property.
2. Identifying Zoning
Where can your business legally operate? How close do you need to be to freeways, the airport, shipping ports, or rail service? Determining your ideal location, and how far you’ll go in all directions outside of that area, is a good starting point.
3. Determining Needs
Does your facility need loading docks? Do you know the correct height, number and configuration? How tall must your ceilings be? What percentage of office space do you need? Factor for future growth when you calculate office space to warehouse ratios. What about parking? Do you expect regular truck deliveries, and will potential properties accommodate that? Do you have mechanical and electrical engineers you can contact for their input when you evaluate potential facilities?
4. Defining Budget
Understanding current market value and your own financials will tell you how much space you can lease or buy.
5. Navigate Solo or Hire a Pro?
If the steps above don’t seem intimidating and you have the time to spare, as well as the expertise and industry connections to ensure a smooth and successful transaction, then by all means, pursue the purchase or lease of industrial space on your own. If, however, you prefer the many benefits that come with partnering with an experienced industrial real estate agent, it’s worth finding someone you can trust.
In northern Nevada, Miller Industrial Properties is an excellent place to start. Contact our experienced agents today.