Industrial property development is one of the least explored sectors because it’s not the easiest to break through; you need consistent and careful planning, management, and execution to find success here. However, we’ve seen a massive breakthrough in recent years that attracted many venture capitalists, realizing that it’s possible to attain success after all. One of the things you need to be considerate of upfront is identifying suitable land, among many other steps. Today’s article will talk about these steps, and hopefully, it can help curious souls and potential developers to see through both the opportunities and challenges of the industrial real estate market.
Site selection and acquisition.
The first step to a successful industrial property development project is thorough market research. It’s important to identify the areas that have a high demand for industrial spaces like industrial warehouses, as well as distribution and logistics centers, to name a few. Your chosen site is one of the major factors that will determine your business’s success. Every site comes with its own potential risks, like possible zoning restrictions or environmental contamination; you just need to choose one that is better than the other and optimize its strengths.
When choosing a location, check the site if it’s suitable for the project first; look if it falls under the right zoning regulations, infrastructure, and utilities. Environmental impact is also something you should be wary of, given how the local government has different and strict ordinances. Once you’ve chosen a site, you should execute due process and start negotiating land purchase agreements with landowners.
Planning and design.
For this project, consult with architects, engineers, and other professionals to create a master plan that outlines the overall vision for development, such as the building layout and infrastructure. We cannot stress enough to double check that the site of your choosing has the right zoning. The structures should meet the necessary and functional requirements and should also comply with building codes. Ensure that sustainable building practices are incorporated, like using eco-friendly materials, low-VCO paints, and water conservation.
On the other hand, engineers will see through so that the supporting systems and other necessary infrastructure like utilities and drainage systems also comply with the codes.
Once the plans are done, make sure to duly submit them to obtain the necessary permits and approvals from the local authorities.
Construction and development.
Once all the necessary permits and clearances are obtained, construction can commence. You need a construction team to supervise the whole process, which includes monitoring the progress and budgeting. And quality control. Employ the necessary contractors and subcontractors with proven quality service for an efficient and reliable construction process.
Leasing and marketing.
Prior to the building’s completion, you should have already prepared a targeted marketing strategy to attract tenants. In addition to that, hire a team that is tasked with managing lease agreements, tenant relations, and building management. The building should have ongoing property management services in case tenants have concerns and inquiries.
Following the aforementioned steps will help you navigate the intricacies of the industry and would hopefully reel in favorable results.