Buyer
5 Things Warehouse Buyers Should Check Before Purchasing
Hector Lopez
5 Things Warehouse Buyers Should Check Before Purchasing
Buying a warehouse can be a great long-term move for a business or investor, but the wrong property can become an expensive problem.
Before opening escrow, buyers should focus on these five areas.
1. Make Sure the Building Fits Your Operation
Square footage alone is not enough.
Check:
Clear height
Dock-high and ground-level loading
Electrical power
Yard space
Parking
Office percentage
Truck access
Fire sprinkler system
The building should work for your business today and still make sense as you grow.
2. Confirm the Zoning and Use
Never assume your business is allowed just because another industrial user occupied the property.
Confirm the zoning and whether your specific use is permitted before removing contingencies.
This is especially important for manufacturing, food production, auto-related businesses, outdoor storage, and other specialized uses.
3. Understand the Real Cost of Ownership
The purchase price is only part of the equation.
Buyers should also budget for:
Property taxes
Insurance
Repairs
Maintenance
Association fees
Financing costs
Improvements
Potential property tax reassessment
Know the true monthly cost before committing.
4. Inspect the Major Building Systems
A good inspection period can save you from major surprises.
Pay close attention to the:
Roof
HVAC
Electrical system
Plumbing
Loading doors
Dock equipment
Parking lot
Fire sprinkler system
Large industrial repairs can get expensive quickly.
5. Think About Resale and Flexibility
Even if you plan to occupy the property for years, think like a future buyer.
Ask yourself:
Is the location desirable?
Is the building easy to lease?
Is the layout functional?
Could another business use it?
Is there room to expand?
A versatile warehouse usually provides better long-term value.
Looking to Buy a Warehouse?
The Warehouse Dealers helps businesses and investors locate industrial properties throughout Southern California and the Inland Empire.
We can help you compare properties, evaluate pricing, identify potential issues, and negotiate the purchase before you commit.
Thinking about buying a warehouse? Contact The Warehouse Dealers before opening escrow.