When you buy industrial property in Denver, here are some essential aspects to consider:
When you plan to buy industrial property in Denver, it can be overwhelming for some, especially those buyers who are not familiar with industrial properties or the market in the area.
An industrial real estate agent in Denver has access to market data and expertise to assist you in selecting a suitable property and negotiating the deal.
Here’s what to consider when buying industrial real estate:
Market Dynamics
One of the greatest factors for industrial real estate investors is vacancy. Therefore, you should research markets with low vacancy rates and strong demand. Additionally, one should consider net absorption. Net absorption in the net change in occupied space accounting for vacated space and new supply in the market. An industrial real estate agent in Denver can assist you in finding industrial space in an area with high demand but limited inventory to allow for upward pressure on rents.
Inspect the Major Components and Systems
Before you buy industrial property in Denver, it is important to inspect the key components and systems to ensure they are running optimally and meet your industrial operations. The property’s soundness is the first thing you should check during an inspection. The industrial space should meet the building codes that ensure it is sustainable and safe. Some of the crucial features to check are:
- Internal height
- Roof and external walls
- Ventilation, windows, and air-conditioning
- Plumbing, electrical, and mechanical systems
- Wall protectors
- Exhaust
- Roller doors
- Fire equipment
- Hardstand surfaces
- Parking space
- Rail or road access
- Delivery areas
- Loading docks
- The general topography of the site
Ensure these components and systems are performing properly to reduce your cost of repair and maintenance.
Conclusion
An experienced industrial real estate agent in Denver has the expertise to perform industrial property due diligence, keeping these important factors in mind. While investing in industrial real estate brings many advantages, there are still financial risks that are only increased if thorough due diligence is not complete. Working with an experienced agent will give you peace of mind knowing that you are investing right.
