An interesting question about industrial space: does the location of that industrial space matter to the company renting the space? Should it matter? What should be the determining factors when choose the right industrial space for lease?
We will take a look at these questions and provide our professional answers. We are RDS Real Estate, serving the Greater Fort Worth area with over three million square feet of industrial space and affordable commercial property for rent. Call us at 817-439-3224 for more information about pricing and availability.
Now, though, let’s talk about the location of industrial space.
Industrial space location dictates pricing.
Before we proceed, let’s start with a basic definition of industrial space.
“Industrial space” is a phrase used to identify a building used for manufacturing, production, fabrication, assembling and conducting meetings. And, while industrial space can also include warehousing tasks, it doesn’t always have to be a warehouse.
Industrial space is most occupied by a lone business, and is typically where the business operates, so it often has a combination of both office space and manufacturing or warehousing space.
Having said all that, the question we ae facing is one of price, and in commercial and industrial real estate, location is king. Always has been, always will be.
Generalization: the closer a property is to the city, the more it will cost. The closer it is to main access roads, the more it will cost. The closer it is to the vibrant part of an area, the more it will cost.
It all boils down to this question, then: Is your business one which will be directly affected by the location of its physical building?
But is it important for you and your business?
The nature of an industrial company is that there is not a steady stream of customers, so being right on the edge of the traffic flow is not terribly important. If you are manufacturing furniture, but you have no showroom for customers, do you really care where that manufacturing plant is located? Why not rent industrial space for lease out in the country somewhere, where prices are more reasonable?
But what about a distribution company? What if you distribute beer, and daily your trucks hit the road to deliver your beer to customers in the city? Every mile driven will cost money, and over time those miles will add up to considerable expense.
Transportation costs will be the determining factor.
Transportation costs, then, will be the determining factor in choosing industrial space, but we should mention one other consideration, that being the environment. The more miles you need to drive to and from your property, the more carbon you are adding to the environment, and Mother Nature frowns on that sort of thing. Is this important enough to you to sway your thinking into finding a property closer to your market?
What we have done here, in this article, is raise questions based on market truths. We cannot make the final decision for you. As the business owner, you ultimately must choose what is best for your business.
A final word about RDS Real Estate.
RDS Real Estate is locally owned and operated. Call us no matter what it is you want i.e. warehouse for rent, shop for rent, retail space for lease, loft for rent, garage for rent, we have it all.