arehouse Cleaning Companies

Warehouse Trends and News

Small businesses like these units because they can pretty much convert their space into about anything they like. If they need a little office and a lot of work room or storage, they can build-out a small office. If they are corporate with some equipment storage, so be it. These are also great for catering companies, contractors and firms that don't need the exposure of a retail front. Usually these facilities are located near major arteries and airports so they are convenient for businesses that need access to highways or for shipping.

The nice thing for contractors and light industrial users is that the complexes are like a mini-networking group for them. When someone owns a tile company, their neighbors might be cabinets and granite manufacturing - so together they can do kitchens and baths and keep each other busy. If one is a plumber, their neighbor might be an electrician and a conduit distributor and both can team up with the General Contractor next door to make competitive bids.

Rates are fantastic on these properties in many cases. I have seen everyday rates as low as 6.15%! One bank has even offered 5.95% as recently as last week!! With rates like this and comfortable terms, small businesses are buying spaces for cheaper than they are renting. These are great opportunities for small businesses that want to expand and take on more space to grow their business.

Besides the benefits of ownership and the tax benefits of a mortgage, the business can deduct expenses and depreciation on the building. At the right price point, a cost segregation analysis would also help reduce the net monthly cost of the unit further benefitting the bottom line of the company that occupies it.

As a commercial investment unit, these are particularly interesting properties to hold. The reason is that they are "clean hands" investments. As Triple-Net (NNN) Leases, the tenant is responsible for all costs, maintenance, taxes, insurance, CAM, repair, etc on the property and they still have to pay monthly rent. Since so many contractors and mechanical type businesses are drawn to these units, you find that many times the tenants are able and licensed to do their own repairs thus saving you from having to call out for estimates. These leases are typically also longer term, 3-5 years and tenants usually stay even longer than that. Rates are not usually as good on the investment side, but potential for appreciation and cash flows still exist in the right areas.

In Palm Beach County, these units are in high demand due to the dwindling supply of industrial land in the central county area. Due to this, the properties located in Lake Worth, near Palm Beach Airport in West Palm Beach and especially West near the Florida Turnpike are usually sold out shortly after a sign is posted announcing construction.

Existing complexes in Boynton Beach and up and down I-95 will prove to be more valuable as Scripps moves into Jupiter, Florida and the spin off businesses and peripheral industries scramble to find available space to relocate their businesses.