Are Warehouses Good to Buy

[Rebecca Seidler]

Does anyone buy warehouses? Was researching that area and it appears lucrative. Looking for the real deal though from the BP community. 

[Joel Owens]

I don't focus on warehouses but the investors I have seen that do focus on (at market or below rents & BOLT down businesses) as KEY drivers for investment.

BOLT down means that the business in general has expensive and heavy equipment that is difficult to move tied down to the space physically and trying to go to another location would prove a major disruption to the business.

Businesses that can pick up and move in an instant tend to have more negotiating leverage especially if the market has high saturation levels of that asset class product in the same rent range. Warehouses can tend to have contamination issues so makes sure to get a recent environmental phase one report completed. Many warehouses are functionally obsolete for todays national tenants and do not have the tall ceilings and over expanded bays so the typical renter in that case is a more regional to mom and pop type business.