Industrial properties are very versatile and can be used for a wide range of businesses. This makes them a great investment for both businesses that need a new location and investors looking for a property they can lease to local companies.
Teletare’s team of experienced commercial real estate brokers can help you find a wide range of commercial properties and warehouse units for sale. We regularly have dozens of lots available near Seattle, with the most popular areas being SODO, the Industrial District, Georgetown, Kent, Tukwila, Burien, Des Moines, Federal Way, Renton, and Seatac. Our website includes an advanced search feature to allow you to quickly find the right property for your business.
Types of Industrial Properties
We regularly have a wide variety of commercial and industrial properties for sale listed on our website that cover a number of industries. Some of these property types include:
- Auto Repair
- Build to Suit
- Business park
- Car Lot
- Cold Storage /Refrigeration
- Service Building
- Data Center
- Call Center
- Truck Terminal
- Distribution Center
- Data Hosting
- Food Processing
- Industrial/Office Building
- Industrial/Retail Building
- Life Science
- Parking Structure
- Research & Development
How to Evaluate Commercial Properties and Industrial Warehouses for Sale
Like any property, you need to do your research before committing to purchase any industrial real estate. As long as you do your due diligence you’ll be able to easily find a commercial property in King Country that suits your needs.
Here are a few tips to help businesses evaluate industrial lots and warehouses:
- Location: As always, location is going to be a key factor no matter what type of business you’re operating. See below for some advice on how to choose the right location.
- Infrastructure: Before you start looking for warehouses for sale in Washington State, you should make a list of all of your needs. This includes internet and phone requirements, electricity, and any appliances or machinery that you’d like to have. Ideally, you’ll want to find a property with most or all of your requirements already in place.
- Building Age and Condition: The age and condition of any structures on the lot are also important considerations. Older buildings or ones that need a lot of maintenance could result in additional operating expenses down the road.
- Doors: For industrial businesses, doors are an important consideration as it will determine what types of products can be moved in and out. Know the needs of your business beforehand so you can assess the suitability of any property you look at. The four most common types of industrial doors are:
- Overhead: Lifted by a track or rail until they are horizontal with the ceiling.
- Roll-up Doors: Roll-up into a single coil when opened.
- Fire Rated: Function similarly to roll-up doors, but they’re made with fire-resistant material to provide a great level of protection.
- Scissor Gates: Move left to right, rather than up and down. They’re made from higher-quality steel to provide maximum security.
For investors, here are some things that need to be considered:
- Operating Expenses: Determine how much it costs to maintain the building and inspect the entire property to see if there are any issues that may result in additional capital expenditures in the future.
- Net Operating Income: If you’re purchasing the property to lease out to tenants you’ll want to estimate how much income you’ll be able to generate each year. You can do this by subtracting the property’s operating expenses and vacancy from its schedule gross income, giving you the net operating income.
- Capitalization Rate: You should also calculate the capitalization rate to determine your expected rate of return on your investment. You can do this by dividing the net operating income by the value of the property, giving you the capitalization rate.
- Lease: What are the current lease rates for the property? Is it comparable to the rates being charged by other similar industrial properties? Look to see if there’s an opportunity to increase rates in order to maximize profits. You’ll also want to try to forecast future market trends to determine how much you’ll be able to increase your leases going forward.
- Vacancy: Are all the units on the property currently filled? If there are any vacancies it will mean additional work in order to get them filled.
- Types of Leases: What type of leasing structure is used by property? You’ll want to know as this can significantly impact your responsibilities and operating expenses. There are four common types of leases:
- Absolute Net Lease: The tenant takes on all the responsibilities, including repairs, maintenance, insurance, and taxes.
- Triple Net Lease (NNN): The tenant is responsible for the three net expenses, which are maintenance, insurance, and taxes. Repairs are the responsibility of the property owner.
- Double Net Lease (NN): This is a variation of the triple net lease where tenants are responsible for insurance and taxes, while repairs and maintenance are the responsibility of the property owner.
- Full Service: All costs associated with the building are the responsibility of the property owner.
Choosing the Right Location
As we already mentioned, the success of your business will likely hinge on your location. There are plenty of warehouse buildings for sale throughout Washington State, so you have plenty of options. Before you even consider a property you need to assess its location and determine if it meets your requirements.
Here are some important factors to consider when choosing your location:
- Competition: Start by surveying the area around any potential property to see if there are other similar businesses operating nearby. You want to try to find an industrial property that isn’t close to a lot of competition.
- Zoning: Not knowing what a property is zoned for before you buy it can be a costly mistake. Make sure whatever lot you purchase is zoned for the type of work you plan to use it for.
- Accessibility: If you operate a business that customers will be visiting, make sure it’s situated near key demographics and major highways so that the location is easily accessible.
- Tips for Investors: Think about your potential tenants and how the above factors will impact them. If you can find a property that works for your ideal tenant you’ll have a much easier time filling the space.
Find Your Ideal Industrial Property
Are you ready to start looking for commercial warehouses for sale in King County? Our team can help you find a property that’s the perfect fit for your business.