Everyone knows that in real estate, it’s ‘location, location, location’, but what else?
When it comes to commercial property investments, there are a lot of other factors that go into play that makes one location better than another. Should you choose to purchase industrial property, you have to decide whether or not to locate in your headquarter city or to move your operations to a more economically attractive city.
The Best Location Depends on the Industry
Generally speaking, industrial real estate is located in what are considered bad locations: heavily industrialized areas, often rundown areas, high traffic areas (or too far away in no man’s land), and noisy locations.
Homeowners do not want to be situated near airports, freeways, or railroad tracks. But for industrial property, those railroad tracks could become part of your multimodal distribution network. Flight paths mean you are closer to a hub that can make last minute shipments easier.
Clearly “the best location” depends on the type of property you are investing in. Though industrial property investors aren’t turned off by high traffic, zoning issues are the biggest problem, especially when searching for industrial property to be revamped for mixed-use – being next to a railway is one thing, being located near a power plant is another.
What to Look for when Locating Industrial Property for Investment
Industrial is a hot ticket item these days, particularly warehouses and distribution centers. The first step in choosing the best location for your industrial property investment is to know what your motivation is – as actors say. Are you going to use this property for industrial use or are you thinking outside the box.
As stated before, zoning laws will either help or hinder that decision. From there, there are other factors that can be applied to choosing the best location for industrial properties across the board.
NAI Brannen Goddard can assist you with all your industrial real estate needs.