Factors to Consider When Purchasing Industrial Real Estate
When it comes to warehouses, many people have the misconception that their main use is just to be a storage place and not anything else. But it must be kept in mind that warehouses can serve many different functions apart from only being a place to store the goods, they can also help with production, transportation, safe-guarding of the goods and much more. This is a big reason why they play such a vital role in the supply chain management sector, and any mismanagement of them can negatively affect the company. Although all the sections within this chain are important, however, warehouses also oversee and are directly related to the other departments, and thus if they are not being managed properly, it can adversely affect the company and result in big losses of both capital and resources.
Warehouses also have other uses beside for simply industrial use, that is, they can be rented out to other companies, made out into office space or even converted in urban residential areas that can then, be given on lease to people. And taking into consideration how well the industrial/commercial real estate market is doing at the moment, purchasing a warehouse or industrial space can, not just be profitable but also be acquired at well below market prices.
But before making the purchase, one must keep in mind that the property should appeal to the next buyer, that is, in case the owner needs to sell it, this will make it easier to do so. If a property is too bare or does not have the necessary features, it can be quite difficult to sell or put it on rent, which in turn can mean unnecessary expenditure for the company regarding its maintenance and taxes.
There is also have been a rise in domestic production instead of importing pre-made goods, which has increased the need for warehouses that can allow the company to do so easily. More emphasis is being given to production-based industry and companies are in need of good warehouses that can sufficiently meet their needs. One cannot deny that industrial real estate in India is booming these days, but still, there are certain factors that must be kept in mind when looking for a warehouse:
1.Location:
It is essential that the location of the warehouse should be well connected through all modes of transport. Having facilities close to expressways, ports and airports all at once, can be perfect as this can help in bringing down costs for transportation of the goods and logistics. Fuel prices are also increasing, and in such a scenario, having a warehouse that is easily accessible and not somewhere too difficult to get to, can have a big impact on how much a company will be spending on miscellaneous expenditures.
2.Maintenance Costs and Taxes:
One should also take into consideration the taxes that will have to be paid, that is, real estate, production taxes and any other important ones according to the individual company. That can affect the price of the warehouse and subsequently alter their selling price too. Apart from that, maintenance costs and more should also be given due attention, to safeguard the company from having to spend more than they are gaining.
3.Building:
The last but not the least tip to focus on should be the actual building, not just the overall look of it, but also materials used to build it, safety features, and any special requirements that might be needed. One should consult their industrial real estate developer and convey to them what all will the organization be needing that way, the search can be narrowed down a lot.
Warehouses also have other uses beside for simply industrial use, that is, they can be rented out to other companies, made out into office space or even converted in urban residential areas that can then, be given on lease to people. And taking into consideration how well the industrial/commercial real estate market is doing at the moment, purchasing a warehouse or industrial space can, not just be profitable but also be acquired at well below market prices.
But before making the purchase, one must keep in mind that the property should appeal to the next buyer, that is, in case the owner needs to sell it, this will make it easier to do so. If a property is too bare or does not have the necessary features, it can be quite difficult to sell or put it on rent, which in turn can mean unnecessary expenditure for the company regarding its maintenance and taxes.
There is also have been a rise in domestic production instead of importing pre-made goods, which has increased the need for warehouses that can allow the company to do so easily. More emphasis is being given to production-based industry and companies are in need of good warehouses that can sufficiently meet their needs. One cannot deny that industrial real estate in India is booming these days, but still, there are certain factors that must be kept in mind when looking for a warehouse:
1.Location:
It is essential that the location of the warehouse should be well connected through all modes of transport. Having facilities close to expressways, ports and airports all at once, can be perfect as this can help in bringing down costs for transportation of the goods and logistics. Fuel prices are also increasing, and in such a scenario, having a warehouse that is easily accessible and not somewhere too difficult to get to, can have a big impact on how much a company will be spending on miscellaneous expenditures.
2.Maintenance Costs and Taxes:
One should also take into consideration the taxes that will have to be paid, that is, real estate, production taxes and any other important ones according to the individual company. That can affect the price of the warehouse and subsequently alter their selling price too. Apart from that, maintenance costs and more should also be given due attention, to safeguard the company from having to spend more than they are gaining.
3.Building:
The last but not the least tip to focus on should be the actual building, not just the overall look of it, but also materials used to build it, safety features, and any special requirements that might be needed. One should consult their industrial real estate developer and convey to them what all will the organization be needing that way, the search can be narrowed down a lot.
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