What Are the Top 3 Things Industrial Tenants Are Looking For in a Warehouse?
I started in industrial, and I continue to have success leasing, buying, and selling industrial buildings. Through the many deals over the many years, I know warehouses, inside and out, from the below ground to the roof. So what are the top 3 things potential industrial tenants looking for in a warehouse building?
Docks and drive-ins first. You’ve got to get inventory in and out of the warehouse efficiently and quickly. A waiting truck costs money and slows down the whole system. If enough docks and drive-ins aren’t there already, most of the time they can be added.
Once those doors are open, other things become important inside the warehouse. Clear height is the vertical distance from the floor to the lowest structural beam or truss. The taller the clear height, the more you can stack pallet racks, inventory, etc. Clear increases the square footage without expanding the overall building size.
Rounding out the top three is power. With the increase in technology and automation, commercial buildings and warehouses need power. Three phase power delivers high capacity to not just keep the lights on, but keep the forklifts moving, heavy machinery operating, and EV vehicles charging.
There are more features that factor in a warehouse’s rentability, but these three are critical to keep the logistics system running smoothly. And we all want and need that.
Jeff Salzbrun is the founder and managing partner of Commercial Equities Group (CEG). As a veteran-owned real estate brokerage, CEG has been involved in thousands of sale and lease transactions, ranging from single offices to 250,000+ square foot buildings. At CEG, we get your deal done. We know space, and we know the CRE business.
