Expanding PEMB for increased NOI
Has anyone ever tried to increase the size of a PEMB? In turn, you would raise the annual NOI. Let's say you have 4 acres of industrial zoned property with a 20k sf pemb. Most developers would just utilize the extra yard space for outdoor storage. But if you have enough room to expand the warehouse portion of the pemb, the topo is level, not hitting on a setback or ROW, an easement, etc…..then why not expand? And if you time it just right when your tenant lease comes due, or have a tenant that just needs the extra space, then it's a win win since you dont have to have any vacancy.
I guess about the only thing that would worry me the most would be that if you add to the existing building, and if the city code has changed since after the initial build, then they are gonna want you to make all the necessary changes to the existing portion of the pemb. Also, may have instances in which if you go over a certain amount of useable sf you may have to fire suppress a building that would not originally have to be since it hit that minimum space requirement. Further, you may have a situation in which it changes the parking requirement etc. Oh yeah, and you would have to look at the load requirements on the endwalls, especially if the pemb doesn’t have some kind of expandable endwall.
Maybe it doesn’t sound like a feasible idea now that I think of it. I guess, just like in residential, sometimes its easier and less expensive to just bulldoze and start new then trying to do an addition.
Thoughts??