Commercial Warehouses pros and cons

[Yoni R.]

A deal fell on my lap to purchase a commercial warehouse. It was built in 2004 and also has office space in it. It’s 8,600 sqf and is two stories. They are asking $1,100,000.

Currently only one tenant occupying about 60% of the warehouse paying $9,000 a month. Tenant pays electric, water and insurance. The tenant is on a yearly renewable lease.

There is a separate entrance so the other 40% of the warehouse can be occupied by a different tenant if wanted.

HOA is $850 /month

Property taxes is $12,200 /year

It’s located in a complex of warehouses and everything looks very kept up and everything is pretty much occupied there. located near the new Amazon fulfillment center in South Florida.

The only problem is I don’t have knowledge in warehouses. I’m a multi-family investor...

What do I need to look for? What is the going cap rate on warehouses? How easy is it to find tenants? Any help will be greatly appreciated here. Thanks to all.