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  • Writer's pictureTom Miller, CCIM

What to Consider Before Buying a Warehouse

When your business is ready for its first warehouse, it’s a big milestone. It means business is going well, but on the flip side, the industrial real estate game can be intimidating to newcomers. Our recommendation is to partner with someone who has been a player in this field long enough to be a true expert, but the more you know going in, the better off you’ll be. Here’s what to consider before buying a warehouse for your growing business.

Location, Location, Location

It’s a rule in real estate as a whole, and it’s equally important in the industrial field too. There are multiple industrial areas here in northern Nevada, but before you can narrow down where to be, there are many considerations. There are governing authorities, flood zones, promixity to freeways and rail, and that’s really just the beginning.

Understanding location is much trickier than choosing between the north valleys or the new Tahoe Reno Industrial Center. That’s where consulting an expert will save you time and frustration.

Amenities & Price

Even within a single market, real estate prices can fluctuate. And much of that cost is related to a facility’s upgrades and amenities (and location). From eave heights and fire sprinkler system density to column spacing width and cost-efficiency, you’ll pay more to get more. The trick, of course, is in determining exactly what you need in a warehouse to avoid paying for anything you won’t use today or in the future.

Those expanding to a new location should consider northern Nevada for its business-friendly climate and tax incentives, which can offset initial costs of a warehouse facility. Particularly for companies interested in access to the 11 western states – but not the sky-high price tag of a coastal warehouse – northern Nevada can be an ideal alternative.

How Much is Too Much?

The right amount of space in a facility depends on the nature of your business and its odds of scaling. Give some thought to how you’ll use the warehouse and how inventory will move. This is another area where a professional industrial real estate agent can offer perspective and advice.

Comparing Warehouse Space

For a more detailed look at warehouse categories, read our recent post, “What to Know about Warehouse Classifications in Northern Nevada.” We also invite you to download our free guide, designed to help you avoid overbuying on a facility that offers features you don’t need.

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Miller Industrial Properties, Sparks, Reno, Nevada
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