Why are industrial buildings a good buy in today’s economy?

The retail market is changing before our eyes. We are seeing retail center after retail center fail primarily because of web trade businesses. This makes the “Industrial Warehouse” a more solid buy now more than ever. A business that used to pay about $ 2 per square foot per month for retail space at a shopping mall can set up a website and work out of a $.40 per square foot warehouse. This is provided that the business puts together a functional website.

I have several clients who have purchased buildings over the last three years who are retooling their businesses to use that model. One of them has had a 30 percent increase in business the last three years running.

The change in retail is driving the industrial building investment to a more desired property than small strip centers. Investors like the fact with a concrete tilt or concrete block building they can pressure wash it out and bring in a new tenant without costly tenant improvement (TI) work that the retail-commercial spaces require.

The functionally obsolete buildings in our area that have too low of ceilings, lack loading docs, or have unfriendly freight truck layouts are not the best buy. The best investment currently is a 23 foot high bay storage building with great freight truck accessibility, freight dock pit and lots of three-phase power. This building fits most users in the industrial leasing market.

At Pacwest Commercial Real Estate, Inc. we understand our changing market and can help guide you into a solid industrial building to either lease or be an own.

For Lease
5,000 Square Feet
Unit B 3825 West 11th Street
Great location on West 11th
$2,495 per month NNN
• 4,265 SF Warehouse
• 745 SF Office/Bathroom
• 12 foot Low Eave
• 14 foot High Eave
• 400 amps 3 phase