Four Steps to Buying or Leasing Industrial Real Estate0

Posted by Thomas Miller, CCIM

miller-industrial-properties-free-guide-lease-processThe internet is a treasure trove of information. And when it comes to buying and leasing industrial real estate, there is no shortage of online advice. If you’re turning to the web for tips on buying or selling industrial real estate, here are four steps to navigate the process – and why step five may be the only one you need.

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.

Our posts are intended to educate commercial real estate users so they can make better decisions in their real estate use, investments, buying and selling. We encourage your input and commentary. If you are enjoying these posts and finding them useful, help spread the word via Facebook, Twitter, LinkedIn, Google + or email with the buttons above.

About the Author

Thomas Miller, CCIM

Thomas Miller, CCIM is the president and broker of Miller Industrial Properties in Reno, Nevada. He has worked in industrial real estate since 1991, with 15 years of previous experience designing and building industrial warehousing and manufacturing facilities in the northern Nevada market. Contact Tom at tom@mipnv.com or 775-742-9891.

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