A Few Points to Ponder Before Buying Industrial Property
Category General
As estate brokers, specialising in the Upper Highway area along the N3 Corridor - an area with foreseeable logistics and industrial growth - Share-List has a particular focus on helping buyers find properties that will be profitable at present and even more profitable in future. We often get asked for advice on things to think about before buying industrial property, and so we thought it's about time we put our insights into writing. Here are a few thoughts worth pondering.
Will the Location Work?
Location may seem like an obvious factor to consider when buying industrial property but it's easy to get drawn in by the excitement of a great deal and not think about day-to-day practicalities and feasibility. You should always ask yourself whether the property is attractive to the people you want to rent it out to and try to put yourself in their shoes. Will your potential tenants have costly commutes to and from the property? Will they be deterred by high crime rates in the area or insufficient security facilities on the property? Is it close to the main arterial routes? Is there a large number of semi-skilled staff available in the vicinity? Is it close to the main logistics hubs and those planned for the future?
Is There a Lot of Maintenance Required?
It's wise to consider the age of any buildings on the property, since older buildings may require more maintenance. Consider older plumbing for instance, and the risk of pipes leaking and causing water damage.
You may also want to consider waste systems. For example, if the property is further out from the city, it may not rely on municipal waste facilities and may have septic tanks or conservancy tanks which will have to be emptied out every so often, depending on the size of the tanks and how frequently the building's toilets are used. Make sure you factor waste management into your maintenance budget.
Is the Property Correctly Zoned?
Does the property come with the correct zoning for your needs? If you aim to target manufacturers, it's important to make sure you have industrial zoning. It's also wise to consider zoning or rezoning costs before purchase. If you are unsure of how to go about the zoning process, we are always happy to assist as we have ample experience in helping our clients and working with the appropriate people to achieve the desired outcome.
Other Attributes to Consider for Easier Leasing or Re-Sale.
- Does it have an adequate power supply and is the power supplied directly from Eskom or via the municipality at a higher price?
- What is the roof height and will it also suit warehousing with racking requirements?
- Is the property sprinkler protected?
- Is there sufficient yard space for Super-link vehicles or only for containers and smaller trucks?
- Does it have adequate loading and unloading facilities including dock levellers and drive in access?
- Does it have up to date building plans with occupancy certificates etc.?
- Does the build adhere to the latest building codes regarding natural lighting etc.?
- What are the cost implications of not having a zoned property versus zoned, both in terms of time and money?
What is the Potential Value of the Property?
You can never do enough research before buying an industrial property. It's worthwhile looking past the property's face value and seeing its potential. Find out if there are any big development projects planned in the area that your potential property is situated and think about whether these plans will help or hurt the future property value. For instance, the Cato Ridge Dry Port (a project we have personally been following) is set to boost the local economies of areas surrounding the N3 corridor. Thus, buying industrial property in Cato Ridge, Hammarsdale or Camperdown would be a wise investment.
If you're interested in buying industrial property along the N3 corridor and would like to find out more about the Cato Ridge Dry Port and the areas it will impact, please give us a call or mail us to arrange viewing with our Upper Highway estate experts.
View our commercial property listings - to let and for sale.
Author: Samantha Anderson
