Steps to assessing the value of an industrial property

Written By Steps To Faculty Published June 22nd, 2010

Do you own industrial property? Do you need to assess the value of the property? Industrial property can change in value over time and include building and land for plant processing, manufacturing and production, transportation, warehousing, storage facilities, and office space. Regular appraisals and business valuations can help you to ensure that you property is valuable. How do you begin to generally assess the value of your industrial property? Let’s take a look at what you can expect to look for.

Step 1 Look around

Industrial property is not the same as residential property in that height and utility are significant factors when considering industrial property. Also determine if your industry is heavy industrial, office space, warehouse, or light industrial. In some instances R&D and distribution centers are also included in this category. Heavy industrial refers to manufacturing, while light industrial represents production line plant processing.

Step 2 Find your region

Is the industrial property located next to a major highway, seaport, railroad system, or airport? If so, then the property will be assessed at a higher value than if it was not. Proximity to major transportation hubs increase value as your industrial property is easily accessible.

Step 3 Check the zoning and taxation rules

Will the zoning rules prohibit you from conducting your business? Also determine if there is any special government tax incentives associated with the industrial property

Step 4 Determine your space

Does the property allow you to store machines or materials? Is there sufficient room for expansion on the land? These are questions that you need to consider when assessing your property. You should also consider if the truck turnaround space is adequate, if there is enough space for your staffers to park, and whether your customers or clients can easily enter and exit the property. These factors are important if you had to sell the property at a future date. No potential buyer will want to invest in property that is not conducive to daily business and firm operations.

Step 5 Examine the special building features and utilities

Does the property have a fence or a good alarm system? Also you need to check if there is a three phase electrical system in place, appropriate sewage system, material handling, proper water and drainage, and lighting. You should also check for span distance, floor spacing and capacity, well functioning HVAC systems and furnaces, ceiling heights, and even bay spacing. These features are standard and must be present in any valuable industrial property.

Remember, industrial property is an ongoing investment that needs to be maintained.

Roger Due

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