as much information as you can on how the building was designed, what materials were used, and how usable the space is. Keep the big picture in mind as you review opportunities to buy or invest in an industrial property syndication. Use these questions to get your mind wrapped around the big picture: 1 Is this building functional? 2 Is this building adaptable beyond the current tenant or business? 3 Is this building aesthet- ically attractive to customers and tenants? 4 Does this building help a potential tenant maintain property safety measures for their employees? 5 Does this building comply with the local, state, and federal codes that apply? well-designed building. That is why engineers, appraisers, and inspectors exist. Get the right people involved, and do not be afraid to pay them. You can adapt an industrial building to meet future demand. You do not need to predict the future. You just need to make the right purchase. • You cannot be an expert in all the components that go into a
5. AIR FLOW AND VENTILATION An industrial property requires air circulation and ventilation to keep the humidity and temperature down and to reduce the risk of fires. For some tenants who may desire to mitigate the buildup of harmful gasses, fumes, or dust particulates, indoor air quality is important. Some local building codes make ventilation If you anticipate significant elec - trical power use, test the electrical capacity of the property you are considering. Electrical capacity is often measured by how much power can be supplied to the building safely and reliably. A licensed and certified electrician or electrical engineer might conduct voltage drop testing, circuit breaker testing, and load calculations to test the system. 7. OFFICE VS. INDUSTRIAL SPACE BALANCE Most industrial buildings have some sort of office component, but the requirements enforceable. 6. ELECTRICAL CAPACITY balance between office and industrial space varies. You need to understand how much square footage goes to office and how much toward actual warehouse space. Keep in mind that some tenants may require more or less office space. The more office space you have, the more you limit the potential client base for your building. 8. CONSTRUCTION MATERIALS Industrial buildings are designed for heavy-duty use and wear and
tear. Industrial tenants require buildings with high-quality and durable materials to withstand their business needs. Building materials can determine what kind of tenant occupies the property. Tenants handling hazardous or flammable materials prefer concrete buildings. The most adaptable buildings are steel buildings with large clear spans. 9. PARKING LOT DESIGN On the outside of the building, note the size and layout of the parking lot. Does it have space for large trucks and vehicles to maneu- ver? Can trucks easily access the building for shipping and receiving? A property that sits on a one-way or narrow street may find that its operational ability is impded. 10. LOADING DOCK ACCESSIBILITY Just as with parking lots, make sure trucks can easily access the loading docks (if present). A well-designed loading dock attracts tenants because it enables them to optimize safety, curtail labor costs, minimize the damage to goods, and reduce injuries. Bonus points if the loading dock height is adjustable and is large enough to accommodate big delivery trucks.
Neil Timmins is an author, investor, and educator. After spending years investing in houses and $300 million in transac- tions, he graduated to investing in
PUTTING IT ALL TOGETHER It can be easy to get bogged down in the details: columns, breakers, loading docks, materials. Gather
commercial real estate. Now he educates others on how to do the same. Neil’s first book “Unicorn Hunt- ing for Real Estate Investment Companies: The Complete Hiring Funnel” was released in 2021. He hosts the popular podcast “Real Grit.”
24 | think realty magazine :: may – june 2023
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