Selecting the right industrial space is a critical decision that directly impacts the efficiency, productivity, and growth of your business. Whether your operations focus on manufacturing, warehousing, or distribution, your choice of facility will influence logistical efficiency, workforce accessibility, and long-term cost management. Conducting thorough market research and considering key criteria ensures that you find a space that meets your business’s operational needs while remaining cost-effective.
This guide outlines essential factors to evaluate when searching for industrial space, from location and infrastructure to budget and environmental considerations.
1. Location: Strategic Positioning for Success
Location plays a significant role in ensuring efficient operations, cost management, and workforce accessibility.
Proximity to Suppliers and Customers
Supply Chain Efficiency: A well-located facility reduces transportation time and costs for raw materials and finished goods.
Customer Access: If your clients or partners visit the site, prioritize locations that are convenient and well-connected.
Transportation Links
Highways & Roads: Easy access to interstates and major roadways is crucial for efficient distribution.
Ports, Rail, & Airports: If your business involves large-scale shipping, proximity to ports, rail lines, and airports can streamline logistics.
Local Environment
Zoning & Regulations: Ensure the property is zoned appropriately for your business and complies with local industrial regulations.
Workforce Availability: Assess the local labor market to ensure a sufficient supply of skilled workers for your operations.
2. Space Requirements: Ensuring Operational Efficiency
Industrial spaces must meet your business’s current and future needs in terms of size, layout, and capacity.
Size & Layout
Current Needs: Determine the space required for machinery, storage, production areas, and office facilities.
Future Growth: Choose a facility with enough room for potential expansion or operational changes.
Ceiling Height & Floor Load Capacity
Vertical Storage Needs: High ceilings allow for efficient racking and storage solutions.
Structural Strength: Ensure the floor load capacity can support heavy equipment and inventory without causing structural issues.
3. Cost & Budget: Balancing Affordability with Quality
Budgeting goes beyond rent—considering all costs ensures financial sustainability.
Rent & Lease Terms
Market Rates: Research the average rental costs in your target area to negotiate competitive lease terms.
Flexibility: Opt for lease agreements that allow for expansion or modifications based on business growth.
Upfront & Ongoing Costs
Facility Improvements: Budget for modifications, installations, or repairs needed to make the space functional.
Operating Expenses: Account for utilities, property taxes, insurance, and maintenance costs in your financial plan.
4. Infrastructure & Utilities: Supporting Business Operations
A well-equipped facility ensures uninterrupted operations and efficiency.
Power Supply & Electrical Capacity
Adequate Power Infrastructure: Verify that the facility supports your machinery’s power needs.
Backup Systems: Consider generators or alternative power sources to prevent downtime.
Water & Waste Management
Water Supply: Ensure adequate water availability for production, cleaning, or cooling systems.
Waste Disposal: Check for appropriate waste management systems that comply with environmental regulations.
IT & Communication Systems
Internet Connectivity: Secure reliable high-speed internet to support business operations.
Security Systems: Look for facilities with surveillance cameras, controlled access, and alarm systems.
5. Building Condition & Maintenance: Avoiding Hidden Costs
Inspecting the property helps prevent unexpected maintenance expenses and compliance issues.
Structural Integrity
Building Inspection: Assess the facility’s structural soundness to identify potential repair costs.
Age of the Building: Older buildings may require additional maintenance or system upgrades.
Safety & Compliance
Fire Safety: Ensure the building is equipped with fire alarms, sprinklers, and emergency exits.
Regulatory Compliance: Confirm that the facility meets health, safety, and environmental standards.
Efficient movement of employees and goods is essential for an industrial facility.
Employee Commute
Public Transportation: Check if the facility is accessible by bus, train, or other transit options.
Parking Availability: Ensure there’s ample parking space for employees, clients, and visitors.
Loading & Unloading Facilities
Dock Access: Loading docks, ramps, and clear staging areas improve material handling efficiency.
Traffic Flow: Consider site layout to prevent congestion and allow smooth truck and vehicle access.
7. Environmental Impact & Sustainability
With increasing regulatory scrutiny, sustainability is a key factor in industrial space selection.
Energy Efficiency & Green Building Features
Energy-Saving Solutions: Look for LED lighting, insulated roofing, and energy-efficient HVAC systems.
Green Certifications: Facilities with certifications like LEED indicate a commitment to sustainable practices.
Environmental Compliance
Emission & Waste Regulations: Ensure compliance with environmental standards related to waste disposal and emissions.
Sustainable Operations: Consider facilities with renewable energy sources or recycling programs.
8. Conducting Thorough Market Research
To make an informed decision, utilize various research tools and professional expertise.
Online Resources
Real Estate Listings: Use platforms like LoopNet, CoStar, and Crexi to explore available properties.
Industry Reports: Market analysis from CBRE, JLL, and Cushman & Wakefield provides insight into pricing and trends.
Local Resources
Chambers of Commerce: Gain economic insights and local business incentives.
Economic Development Agencies: These agencies offer resources on tax benefits and industrial growth opportunities.
Engaging Professionals
Real Estate Brokers: Work with brokers specializing in industrial properties to find the best deals.
Legal Advisors: Have legal experts review lease agreements and zoning laws before finalizing your decision.
Site Visits & Inspections
Physical Assessment: Conduct on-site visits to evaluate the property’s condition, suitability, and layout.
Local Amenities: Consider nearby services like banks, restaurants, and supply vendors that support business operations.
Conclusion: Making the Right Choice
Selecting the right industrial space involves thorough analysis and careful consideration of multiple factors. From location and infrastructure to costs and sustainability, each element plays a crucial role in ensuring your facility supports long-term business growth. By conducting detailed market research, engaging with industry professionals, and assessing financial and operational viability, you can secure an industrial space that enhances efficiency, reduces costs, and provides scalability for future expansion.
Gordon is a licensed Illinois & Wisconsin Real Estate Broker, who manages the commercial sales and leasing team. Gordon also leads Van Vlissingen and Co’s media marketing team. He is an honors graduate of St. Mary’s College of Maryland and holds a Juris Doctorate from Tulane University Law School.