The Trick to Saving Money on a Warehouse Investment0

Posted by Thomas Miller, CCIM

miller-industria-properties-warehouse-classificationsUnless you’re in the market for a warehouse, they all seem pretty identical. They’re big, with lots of doors and high ceilings. But a little digging makes it easy to see what differentiates one warehouse from another. So if you’re beginning that process of poking around to see what’s out there, here’s the trick to saving money on a warehouse investment.

Steps 1 & 2

Before you can settle on a warehouse that meets your needs and secure it at a competitive price – step two – you need to be very clear about warehouse categories and classifications. This knowledge is step one in the warehouse hunt, and it’s absolutely non-negotiable if you want this transaction to go in your favor. To make it easy, Miller Industrial Properties created a guide that clearly identifies the differences between class A, B, and C warehouses. While we’re a boutique firm in northern Nevada, this information will be useful no matter where you live or work. We make our spreadsheet and guide available at no cost to anyone who asks, and it will help you decide which warehouse class best suits your needs. Once you know that, you’re in a position to understand which properties in your area are worth considering.

Location, Location, Location

Just as our warehouse classifications guide applies across the board, so does the golden real estate rule of “location, location, location.” Varying jurisdictions mean a variety of authorities governing those jurisdictions, which is a factor you’ll want to note. It’s also important to know if a particular warehouse is situated in a flood plane or if it’s AE, X or X shaded. The individual characteristics of a warehouse are what make one different from the next. These include features and details like:

  • base rent
  • operating costs
  • eave height
  • sprinkler systems
  • column spacing
  • truck courts
  • trailer parking
  • dock count

Understanding which warehouse characteristics pertain to which classification makes it easy to eliminate facilities that won’t serve your need, which saves you time and money during your property search.

Download our free Warehouse Classifications Guide now. Once you do, you’ll be well informed about the differences between warehouses so that you’re able to make an educated decision about what will best suit you. And it’s that knowledge that is the trick to saving money on a warehouse.

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 or 775-742-9891.

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