Finding the Right Industrial Space for Your Business Operations

Industrial space selections impact operations for years. Get it right, and the facility nurtures growth, efficiency, and manageable expenses. Get it wrong, and businesses fight their own workspace and facility instead of focusing on customers and subsequent growth. The good news is that when you identify which elements truly matter to your specific business type and operations, the process becomes relatively simple.

Actual Space Needs

Many businesses assess their space needs based on guesswork and either become overcrowded or pay more than necessary for square footage that will never get used. A more effective approach includes addressing space needs through actual operations requirements.

What is the average amount of inventory reserved for overflow? How much equipment needs housing? How much of the floor space is occupied through packing and processing efforts? Factor these amounts in, then add space for aisles, loading/delivery areas, and administrative spaces if applicable.

Once a baseline is established, add in expansion potential – most businesses thrive on 12-18 months of projected growth before needing to relocate; planning for expansion from the beginning typically eliminates the need to find new facilities again. Accurate sizing from the onset avoids reoffering frustrations down the road – or worse – paying for excess square footage that remains vacant.

Location Implications

When it comes to operating an industrial facility, location matters. Proximity to major highways and roads means greater productivity during the delivery loading process. Proximity to suppliers means shorter lead times. And proximity to clients means reduced shipping costs – and vice versa – since businesses cannot run out of business from a location too far away from their clients.

For those looking for industrial space to let, one effective way to narrow down options is to see how certain locations might benefit the supply chain. It’s also easy to forget about accessibility for employees; if an industrial facility is hard to get to, getting employees to want to work there (and subsequently keeping them there) becomes even more difficult. Public transportation access or major freeway entry makes travel easier; a crummy side road makes it harder to look at an opportunity.

Layout and Structure

The layout matters when it comes to interior configurations; open spaces with high ceilings and few columns create an optimal environment since equipment can be housed wherever necessary and racked stacked high to maximize vertical options without adding square footage costs.

Loading docks matter more than many businesses initially believe, as well as access points – ground-level access occurs naturally, but some facilities are raised to accommodate truck beds. The flow makes sense for many business operations with linear processes or assembly lines since products should flow from input to processing to dispatch. For varied operations, flexible spaces where inventory can more easily move may suit better in the long run.

Infrastructure and Amenities

Power is a significant factor but often overlooked until it presents an operational concern. Industrial equipment, in addition to appropriate climate control and lighting, requires substantial power supply; facilities that factor in electrical capabilities charge less down the road than those requiring upgrades.

Appropriate climate control varies based on temperature needs – some operations require humidity control alongside temperature; others need minimal efforts like ventilation. Understanding your needs ahead of time helps gauge whether a facility has what it takes – or asks too much for features never needed in the first place.

Certain operations require specific plumbing and waste disposal capabilities: manufacturers, food processes, or cleaning-oriented processes need more than what standard facilities can accommodate.

Security and Safety Features

Adequate industrial facilities host security measures in place to protect inventory and equipment; limitations generally include fencing, adequate lighting, and controlled access points. Some need more: surveillance systems, alarm monitoring efforts, and secured access points to certain areas of the facility.

Safety features include fire suppression systems or obvious emergency exits – clear or illuminated exits help ensure customer exit safety while safely storing inventory requires illuminated access to avoid injury.

Lease Terms

Industrial leases stretch longer than those for office or retail; three-to-five years is typical as long as tenants know what they’re getting into. While this stability provides common ground upon which a business can settle into operations from the get-go, it also means no going back without incurring additional costs.

Understanding what’s included in the lease makes a major difference – aspects like maintenance and repairs remain with the tenant versus the landlord, as well as insurance considerations, what use is permitted in the space, if modifications are allowed during occupancy, and if renewal options present well.

Consider implications of expansion/contraction; if an opportunity presents itself with extra space down the line or others do not exist due to economic realities during occupancy, knowing that an early exit is possible or added square footage in-house is present makes the transition easier down the road.

Viewing Facilities

Not every problem presents itself immediately upon viewing a facility; it’s critical to have a checklist ready when considering options. Sometimes the loading area (or lack thereof) is as important as loading bays – the size of multiple bays, their conditions, convenience of operation all matter; floor conditions matter just as much since uneven flooring or rips cost time and money down the road.

Ceiling heights matter just as much due to structural elements – count columns along the way as they may not lend themselves well to your planned path/take up valuable floor space – or too many vertical supports may block convenience altogether.

Assess lighting capabilities by counting outlets along the way; check how doors operate – secured doors, activated rollers – all present problems down the road if they don’t operate easily upon first assessment.

Speak with key holders about any maintenance/upcoming repairs or known issues – all in all transparent facility plans help understand what you’re getting into instead of avoiding surprises down the line once a lease is signed.

Getting Help

Getting your bearings together takes time – and familiarity with the local market – and property professionals who specialize in industrial facilities have a good sense of what’s available, who owns what and similar features of landlords who’ve worked with them before.

They’re also helpful with leasing negotiations since they know what’s industry-standard or excessive – which can benefit business efforts – and protect any tenant against bad clauses that may present themselves later on down the road. The time saved – and potential better option – often justify fees involved.

Timing Right

The earlier you start searching, the better; between three-to-six months is typically ideal as it allows time to find multiple facilities, assess initial terms and conditions of prior consideration agreement while giving tenants time to negotiate carefully before a proper move-in timeline is established.

Rushing into it forces businesses into facilities that don’t suit their needs – or requires them through lease negotiations due to time constraints that shouldn’t have been obligations in the first place all last minute just for them.

Closing the Deal

Narrowing your options down means comparing what you’ve found – establish a simple scorecard where location, size, layout/amenities/accessibility/leasing terms are assessed objectively against requirements.

Make adjustments where necessary – for current need vs future potential as well; an ideal situation now might not be worth trouble in one year’s time without expansion possibilities – but one expansion-ready from day one but too expensive makes little sense either.

The right industrial space fosters operational growth while reducing obstacles that support business expansion instead of problematizing natural business efforts. Take the time needed to find the ideal match as it pays off down the line during occupancy.