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Aside from making sure that you are buying the right type of property for your business, there are other considerations one should be aware of before making that purchase. Here are some tips for buying industrial properties for general use.
1. Check the property’s use restrictions
Buyers should check on existing restrictions imposed on the development by the authorities. B2 industrial properties often come with strict rules about the kinds of activities that can be undertaken, pollution control measures as well as the use and storage of hazardous materials.
It is crucial to have a firm understanding of the business operations to be undertaken in the property and to check the specific activities and materials the occupier plans to handle and store to determine if they may be allowed to do so.
2. Determine the building’s provisions and capacities
Know whether the business activities to be carried out on the property have specific design capacity needs, and whether these can be accommodated in the property. Consider not just the unit’s design load provision but the means of access as well. The delivery of heavy machinery or bulky goods might require direct ramp and driveway accesses that have heavy design loads too. The capacities of the goods and service lifts are another area for review. Ensure that the industrial property you are considering allows heavy vehicle access as well—either directly to the unit or via a loading bay.
Loading/unloading facilities are also just as important as heavy vehicle access. Make enquiries about your unit or the development’s loading/unloading facilities to ensure that your business operations to be carried out smoothly.
3. Ensure the floor-to-ceiling height is sufficient
The machinery and equipment to be used in the occupier’s operations must be measured to ensure that you buy a property with a floor-to-ceiling height that is adequate to be able to use these machinery safely and comfortably.
Ensure a generous height clearance for higher racking systems and the installation of overhead cranes, where necessary. Also consider whether the floor-to-ceiling height can accommodate upgrades in machinery or new technology expected in the years to come.
4. Consider the facilities surrounding the development
B2 industrial developments are typically located far from residential areas and amenities. This, unfortunately, can spell some inconvenience for workers and employees.
If arranging for workers’ meals is going to be an issue, look out for multi-user developments with their own canteens and shops, which can greatly boost convenience for users and make it easier for the business to hire employees. Also, consider transport links and supply of workers to the area in which the property is situated. Proximity to MRT stations, expressways and dormitories can significantly boost accessibility.
5. Check whether a waste sump is needed and catered for
If your operations involve the use of oil and grease, cleaning off drips and spills occasionally necessitates the installation of a waste sump in the unit. You will want to ensure the B2 industrial unit you are considering is already equipped with one and check if the maintenance of the waste sump and grease trap is the responsibility of the unit owner or the MCST.
6. Ensure there is sufficient power for the proposed business activities
The power needs of the end user must be considered when choosing a B2 industrial unit. Check not only that the unit can supply sufficient power for your business’s needs, but also that there is a buffer in case the amount of power required should be raised in future.
When purchasing B2 industrial property, it is crucial to ensure the property can support the user’s business activities and is flexible enough to accommodate future changes to operations or equipment. It is also important to thoroughly inspect the property and make all the necessary enquiries to ensure that the purchase is a sound business decision.
Conclusion
Just like with any property investment, having done due diligence in terms of what your industrial property requirements are can come a long way in making a purchase of such properties. Being equipped with sufficient information about your business needs ensures you not only a good purchase but also the right one.
This article was sponsored by Beacon Properties.
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