Industrial/Metal Buildings-Who likes this market?

Question

While I only browse the forums once every few weeks, I don't see very much discussion on industrial/metal building lease space. Just thought I would see who all of the BP members out there invest in this space?

Light Industrial metal buildings for lease is my main area of focus, in north Alabama. Just looking to connect with those that are involved in this space and I'm always interested in looking at deals that involve metal buildings.

Hai Loc · Answer

With this type of layout would adjusting the HVAC to each individual unit be convenient when dividing? Also would these metal frames thrive is colder northern climates?

Joel Owens · Answer

Industrial the big players I see focus on BOLT DOWN businesses. For example do they have a lot of heavy and expensive equipment installed that is very hard and time consuming to move and a huge disruption to the production and profitability of their business.

The harder it is for them to move typically the better for the landlord on industrial properties. Industrial you have to heavily assess the type of business operating their and worst case scenario for environmental contamination.

The larger national type tenants like Amazon most want custom new builds with high ceilings and tons of bell and whistles. The older industrial buildings that are outdated to today's standards fit more to the small and medium businesses just wanting space with a decent location at a reasonable cost.

Cole Bigbee · Answer

@Clint Shelley 10,000sqft is a very good fit for your location. Feel free to message me anytime and I can pull some building numbers together for you.

@Kris Bennett The majority are service providers on the buildings 10,000sqft or less(HVAC, plumbers, mechanics, industrial cleaning company, equipment rental stores, etc.) with some light manufacturing mixed in. These types of tenants need more shop than office.

Greg Dickerson · Answer

I have built and developed several metal buildings of all sizes from single use to multi tenant flex space and office warehouse condos. One of them was an award winning Harley dealership. The largest was 300,000 square foot. This is a great space especially right now in certain markets.

Cole Bigbee · Answer

@Hai Loc- On dividing the HVAC for each individual unit, depending on how much space would be heated and cooled, you might be able to us a mini-split unit. Depending on billing, you might want to consider separate meters for each section if it is not already set up with multiple meters.

On the metal frames, yes colder weather does not affect them as engineered systems are designed for specific locations, to account for snow loads, wind loads, etc.

Cole Bigbee · Answer

@Kris Bennett Anytime. The good thing about metal buildings is their easy to partition off and turn into multiple spaces, or leave as one big open space. Let me know if I can ever help you in any way.

Thanks,

CB

Kris Bennett · Answer

@Cole Bigbee that's interesting. I've been presented a few deals where the sponsor wants to build industrial condos for these types of users. It seemed like a good idea on paper, but I thought the entitlement process and development risk was too high. The metal building option you're talking about seems more palatable. Thanks for sharing!

Kris Bennett · Answer

What types of users occupy this space? Is it mostly industrial manufacturing with some office tenants sprinkled in that don't need/want fancy space?

Bjorik Mutize · Answer

@Cole Bigbee I broker Industrial in MN as well. Very in demand product type, metal buildings or other types.

Greg Dickerson · Answer

I did some in VA and NC. Some spec, some custom as GC and some build to suit.

Industrial/Metal Buildings-Who likes this market?

Industrial/Metal Buildings-Who likes this market?

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