Industrial Property Site-Selection Factors
When it comes to new industrial properties, developers have a lot they need to consider.
What’s the most important rule of real estate?
C’mon, we all know it. Say it with me.
“Location, location, location.”
When it comes to industrial, though, finding a good location is sometimes easier said than done. Last-minute delivery is mandatory, but it’s sometimes difficult to accommodate, especially in busy cities. Between supply chain issues, consumer demand and access to major highways, developers need to put a lot of thought into their properties. And, according to a 2022 CBRE survey, occupiers are planning to expand their U.S. footprint within the next three years.
There are a lot of factors industrial developers should consider when they’re selecting a site for their property that go beyond acreage and access to seaports and main roads. One important thing to think about is access to electricity.
“These buildings are no longer static racks and a handful of forklifts, Dominic DeRose of Cresset Partners said to Gabriel Frank for “Resilience Is the Bottom Line in Site Selection.” Electricity is needed to keep the machinery working and to keep the temperature regulated so the equipment doesn’t overheat, or so perishable items don’t spoil.
Additionally, there needs to be room for workers to park. “When you have 100 employees, you need 100 to 200 parking spaces,” DeRose told Frank. According to Frank’s reporting, to address this issue, some companies are getting creative, for example, by offering tenants additional space beyond the property so they can park.
So maybe we should add to that rule of real estate: “Location, location, location and creativity.”