Factors to Consider When Looking at Industrial Warehouses

Factors to Consider When Looking at Industrial Warehouses

Purchasing industrial warehouses as investment properties is typically an excellent idea. Despite the uncertain circumstances caused by the coronavirus, industrial real estate still saw great success. Companies are always in need of warehouse space, no matter if they do in-person or online operations. With that being said, industrial warehouses are almost always occupied by a tenant, which means purchasing one is a great idea. In this blog post, we are going to explain what to look for in a warehouse to ensure it is a great investment.

What to Look For in Industrial Warehouses

Excellent Location

When it comes to purchasing an industrial warehouse, the most important factor is location. It should be in an area where the tenant’s employees can commute to easily. This means near a larger city that has a significant population size. Also, it should be close to a major highway, so trucks can get to the loading docks with ease. This will encourage higher productivity rates as the truck drivers can pull off the road, load up the trailer, and get going again. Additionally, this can save your tenants excess costs, and can potentially get them more customers when they see their amazing productivity rates. When your tenants have success at your location, they will be more likely to stay in your space for several years.

Size of industrial warehouseThe Size of the Industrial Warehouse

Another very important factor is the size of the industrial warehouse. Of course, you don’t want your warehouse to be too small to fit your tenant’s merchandise and employees. Or, you don’t want them to grow out of it within a year. At the same time, you don’t want your warehouse to be too large for your products and employees. This is why choosing the right size warehouse for your needs is so important.

To choose the correct size of your warehouse, you will want to take a look at which industry you would like to target. When doing this, you should consider what the booming industries are in the city or state you are purchasing a property in. Once you choose an industry, you will need to look at the average warehouse square footage needed. Your commercial real estate broker should be able to tell you this, and there are online resources to find this information. Then, look for warehouses that are around the same size, if not slightly larger. Being the option with the most space will prove to be desirable among tenants.

Consider Buying an Industrial Warehouse With an Office Area

Many of our clients choose to purchase industrial warehouses that include an office area. This is a highly valuable feature that many property owners do not think of. In almost every warehouse, there is likely a management team that handles business activities concerning finances, employee management, employee records, and more. This management team benefits from being at the same location as their employees, rather than having to drive from another location. When your property features an office area for the managers, it is much more valuable. You will save the tenant from renting out a second space, and you make it easier on the staff. Fit Small Business has an excellent layout on their website including an office space example.

Cost per Square Footage

Another important factor when purchasing industrial warehouses concerns budgeting. The cost per square footage depends on the property’s condition, as well as its location. There are many markets in which industrial warehouses are booming due to the low cost per square footage. However, there are other markets that are failing because of the price of buying and leasing industrial space. For example, in San Francisco, California, you can find industrial warehouses for sale for upwards of $320 per square foot (in mid-2020). However, in Memphis, Tennessee, you can find similar listings for under $20 per square foot. Clearly, in Memphis, you would have much more wiggle room to make a profit off of your tenant’s lease payments. In San Francisco, you would likely struggle to find a tenant who is willing to pay what it takes for you to make a significant profit.

Our office is in Salt Lake City, Utah, and we have many industrial warehouse listings. This post is being written in mid-2020, and we are seeing warehouses be sold at around $115 to $170 per square foot. However, these prices can go up and down depending on the market and seller, as do properties in other cities. But, as you can see, prices are subjective to the city and state you are in. So, be sure you take this into account before investing in industrial warehouses. You want to find a listing in a great area (which does increase the sale price), but also a listing that allows you to make a profit at a reasonable rate.

Purchasing Industrial Warehouses as Investments

At the end of the day, purchasing an industrial warehouse is typically an excellent investment. However, when you keep the factors above in mind during your search, you are much more likely to be happy with your investment. If you need the services of a commercial real estate broker in Salt Lake City, feel free to contact us. Our team would love to assist you and help you find a property that you can make a smart investment in.

UDOT to Auction Off Mixed-Use Properties in…

UDOT to Auction Off Mixed-Use Properties in…

FOR IMMEDIATE RELEASE

UDOT to auction off mixed-use properties in growing region of Salt Lake City County

Surplus land between SR 111 and Mountain View Corridor
to go on sale in final UDOT online auction of 2019

Salt Lake City, UT (October 28, 2019) The Utah Department of Transportation (UDOT) will hold an online auction of prime, mixed-use development land in Salt Lake City County, Utah. The 50.7 acres of surplus property is off a major highway in a rapidly developing area of the county.

UDOT will auction the property via an online platform created and managed by SVN Auction Services. The auction, the largest so far and the last one for 2019, is scheduled to run from Oct. 31 through Nov. 7.

The acreage on SR 111 is the largest of 16 properties up for auction during that period, and has a starting bid of $4.5 million. The starting bids for all 16 properties total more than $9.3 million.

“The SR 111 property is highly versatile: The zoning permits both residential and commercial use,” said Louis B. Fisher, III, national director of SVN Auction Services. “It’s situated between two busy roadways, and the average income of the surrounding neighborhood is higher than the state average.”

The property is split into two parcels. One contains about 38 acres that sits along SR 111. The smaller, about 12 acres, will connect to SR 111 from a bridge scheduled for construction. The busy Mountain View Corridor lies to the east of the property.

“This whole area will be getting some major improvements in transportation and infrastructure in the near future,” Fisher said. “This is highly desirable property and an excellent opportunity, whether the buyer wants to develop it for retail, commercial or residential.”

The other properties up for auction are in the Utah cities of Riverton, West Valley City, Clinton, Roy, West Haven and Syracuse.

The auction website at www.UDOTauctions.Utah.gov provides continuous access to UDOT property information. Qualified buyers can bid from the website in real time. The auctions comply with the state’s recently established process for the sale of surplus property.

UDOT’s online auction in March included 89 approved bidders from four states. Entities working with UDOT on this project include the SVN Auction Services team of Fisher and Dave Gilmore, and Chet Barber and Tia Shim of SVN Alta Commercial in Salt Lake City.

Darek Sagers, UDOT’s deputy director of rights-of-way, said UDOT has been pleased with the online auction process so far. “We’ve been very glad to see things go so smoothly,” Sagers said. “The buyers are receptive to the convenience of the platform. It’s been a win for both sides as we continue to market this surplus property.”

More information on the auction is available at www.udotauctions.utah.gov/auctions.

Contacts
Louis B. Fisher, III, CAI, National Director, SVN Auction Services / 954-931-0592 / fisherL@svn.com
Ken Zeszutko, Z Corp. PR / 321-213-1818 / kenz@zcorppr.com

UDOT Surplus Properties Auction Set …

UDOT Surplus Properties Auction Set …

FOR IMMEDIATE RELEASE

UDOT surplus properties auction set for June 5-12

 Following the successful inaugural auction using its new online platform, UDOT will conduct next auction of 15 surplus properties June 5- 12

Salt Lake City, UT (May 15, 2019) The Utah Department of Transportation (UDOT) is conducting an online auction of 15 surplus properties June 5 -12. For more information on the properties, visit www.UDOTauctions.Utah.gov.

UDOT launched and successfully auctioned off its first series of surplus properties using its new, innovative online auction platform in March. With nearly 90 approved bidders from four states, the online auction was an overwhelming success.

“We are extremely pleased with the results of our first online auction event and very encouraged with the buyer market receptivity to our newly created platform and program designed for UDOT,” said Rod McDaniels, UDOT’s deputy director of right-of-way. “It allows us to sell surplus parcels with wide market exposure and more efficiencies at scale.”

The upcoming online auction June 5-12 includes commercial lots, residential development and land. Register to bid at https://udotauctions.bidwrangler.com/accounts/sign_in

The UDOT auction website provides round-the-clock access to UDOT property slated for auction and allows qualified buyers an opportunity to bid in real time. The auctions comply with state law and accompanying administrative rule R907-80.

“This new platform is very user-friendly for the bidders,” said Louis B. Fisher, III, national director of SVN Auction Services, which worked closely with UDOT in launching the auction platform. “UDOT established a framework and we worked in concert with them within that framework. It’s been a tremendous relationship. Based on the response to the first auction, it’s the right solution–the right platform.”

Contacts
Louis B. Fisher, III, CAI, National Director, SVN Auction Services, 954-931-0592 / fisherL@svn.com
Ken Zeszutko, Z Corp. PR / 321-213-1818 / kenz@zcorppr.com

SVN Auction Services Awarded Contract to …

SVN Auction Services Awarded Contract to …

FOR IMMEDIATE RELEASE

SVN Auction Services awarded contract to support UDOT to meet mandate to sell surplus real property 

SVN Auction Services builds electronic online auction platform to enable the Utah Department of Transportation to accelerate and close sales of surplus real property as mandated by Utah state legislature

Salt Lake City, UT (February 20, 2019) – SVN Auction Services has been awarded a five-year contract with the Utah Department of Transportation (UDOT) to create and manage an electronic online auction platform and clearinghouse to streamline sales of surplus real property owned by UDOT.

The UDOT SVN-managed online auction platform accelerates surplus real property sales for UDOT.  The service and website address at www.UDOTauctions.Utah.gov delivers 24/7 access to UDOT auction-related information allowing interested parties to register for opt-in email notifications. It also allows real-time mobile platform bidding for qualified buyers.

“Based on our extensive national online auction experience, we have created an online solution to maximize value for UDOT,” said Louis B. Fisher III, national director of SVN Auction Services. “This allows the department to more efficiently direct all sales-related proceeds back into the Transportation Fund to offset future transportation developments costs.”

The website is currently live. The first online auction starts advertising in February and goes live March 13-20, with nine surplus properties to be sold.

Working in full collaboration with the national SVN Auction Services team, SVN Alta Commercial, the SVN Salt Lake City office provides local brokerage activities for the auctions.

“This partnership is exactly what we need to assist us in creating a new process and platform to meet our department’s goals and initiatives,” said Rod McDaniels, UDOT’s deputy director of right of way.

The surplus land auctioning process is governed by Utah Administrative Code R907-80 (Disposition of Surplus Land), establishing the process required for UDOT to dispose of real property declared as surplus to the state’s needs.

Contacts
Louis B. Fisher III CAI, National Director, SVN Auction Services, LLC, 954-931-0592 / fisherL@svn.com
Ken Zeszutko, Z Corp. PR / 321-213-1818 / kenz@zcorppr.com