Most people are familiar with residential property management and commercial property management. Understandably, we often get asked, “what is industrial property management?” as industrial property is often perceived as the same as commercial property. However, this is not the case.
Commercial property is divided into several different categories, one of which is industrial property. Further, the industrial property itself is divided into several areas. An understanding of each of these areas and their unique qualities go a long way toward knowing how to properly manage each as an industrial property manager.
What is Industrial Property Management: The 5 Distinctions of Industrial Property
- Light Assembly: this is a simple property; in most cases, it’s quite easy to reconfigure; mostly used for a combination of office space, storage, and product assembly.
- Flex Warehouse: this space is also easily transformed; it’s usually grouped in single-story industrial parks; typically it includes a blend of office and factory space.
- Businesses in these properties may include small scale distribution companies, research laboratories, tech or telecom businesses; pay careful attention to the lease contract to ensure tenant improvements don’t infringe on long-term flexibility.
- Bulk Warehouse: these are large properties, somewhere between 40 thousand and 1 million square feet in size; often used for regional distribution of products; their focus is storing, sorting and moving products between destinations; it’s critical that trucks have easy access to enter and exit highways.
- Heavy Manufacturing (Plants/Factories): this includes most large manufacturers; usually heavily customized with machinery; major renovations would be necessary to re-tool this property for another tenant.
- Mining and Shipping Locations: Some mining and shipping operations can be classified as an industrial property.
- For these, keep updated on the latest advances in technology as pertains to each specific industry – from distribution technology for the warehouse as well as robotics, improved clear heights, and cross-docking proficiencies; keep abreast of new environmental requirements for heavy manufacturing.
What is Industrial Property Management: How to Manage an Industrial Property Effectively
Active Participation
As an industrial property manager, your involvement is crucial for the maintenance to go well and for the tenants to feel cared for. Being proactive and diligent with the work you do increases the property value, which in return, builds your reputation and brings in more clients.
Being involved with the tenants creates a trusting environment and reduces tenant turnover. You want to avoid properties being uninhabited because empty properties don’t bring any income. Keeping tenants happy means having a proactive approach to communication and anticipating their expectations and needs.
Knowledge
The key to successful industrial property management is a working knowledge of all of the machinery, equipment, materials and tools for each property.
It is equally as important to know the government sales regulations, policies, and methods that apply to each as well. Industrial property management companies must also have people with extensive knowledge of contract provisions, able to understand and apply contract clauses and government procurement regulations when necessary. It’s also essential to be aware of local marketing trends and needs to stay ahead of the property management game and keep it fresh for potential tenants, buyers and investors.
Making Property Maintenance the Top Priority
A profitable property is the one that’s well-kept. The appearance and the condition of the property have a great impact on the rent price. The maintenance makes the difference in the category the property will fall under, which directly affects the renting ability and price. Though you don’t have to necessarily go for a class A maintenance and adjustments, the tenants will definitely move their business and earnings growth. Skillful property managers understand all of the tasks related to industrial property management, which is why they’re the one’s owners turn to.
Understanding Property Specifics
Property improvements increase the property and rental value, resulting in higher profits. Targeted improvements that hit the mark on tenants’ needs are the best way to upgrade a property. Improvements such as building a parking lot or investing in landscaping can increase profits by thousands of dollars in less than two years.
Understanding the Leases
Making sure all of the lease points, especially, provisions are set to ensure a long-term relationship is a must to avoid misunderstandings and overlooking late rent provisions. Additionally, contracts vary with different tenants, which brings new elements into the relationship. You should know all the details of each individual lease to avoid mishaps.
Need Help With Industrial Property Management? TAFCO Realty Corp offers Kelowna’s Best Industrial Property Management Team
Knowing all of the necessary tasks of keeping a property profitable, it’s more than clear why effective industrial property management requires active participation and a proactive approach. TAFCO Realty Corp provides all of the necessary services, with an individual approach to every property to max out its potential.