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5 Red Flags When Looking for Industrial Real Estate Listings

By Colby Goetz
October 18, 2017
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When looking at industrial real estate listings, it’s important to do your due diligence. Commercial real estate is a significant investment, and you don’t want any unwanted surprises after you make your purchase. After all, there is a limited time to pursue real estate transaction disputes in states like California. Here are just a few items that can be initially identified as red flags upon a cursory review of the property. This is not an exhaustive list, but it can be observed by even the most untrained eye. Keeping these in mind could save you a lot of time and money on extensive due diligence that may not be necessary on a dud property.

1. Ensure adequate ceiling height

In an industrial space, your tenants are probably going to require ceiling heights of at least 15 ft (even better? 18 ft) to meet their needs. Anything less than that makes the space nearly impossible to utilize for industrial purposes, such as storing and stacking equipment.

2. Assess the roof condition

Look for any signs of leaks, such as ceiling discoloration or even buckets on the floor. You can get a Greensboro roof replacement for quite cheap if you go to the right contractor or if you know people in the industry but it can be a time-consuming task so it’s better to know what you’re getting yourself into. A surprising but accurate hack for this? Check out the building’s roof on Google Earth, and if you discover any issues with the roof, visit website here.

3. Keep a lookout for cracks and settling

Do a quick but thorough walk of the interior and perimeter of the building and look for any cracks in the walls or floors. Large cracks in the concrete can be a sign of serious structural problems. If you were really interested in the property, however, your next step would be to call somewhere like CenTex Foundation Repair Waco who could assess the damage and see whether it is fixable within your price range or not.

4. Make sure the building is accessible via truck

In an industrial space, it’s almost always a necessity for trucks and heavy equipment to be able to load supplies in and out of the building. This may seem like an obvious point, but you would be surprised at how many spaces are less than accessible. A loading dock that is trailer height is preferable.

5. Beware of environmental contamination

Red flags for potential contamination include:

  • Stains on the floor
  • Obvious spills
  • Unlabeled containers of waste and/or raw materials

Environmental contamination is always a risk in industrial properties. Look for a space that is clean, carefully kept, and tidy.

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