Investing in Small Industrial Units: A Comprehensive Guide
Introduction
Small industrial units are ideal for businesses needing space for light manufacturing, storage, or distribution without the overheads of larger facilities. Purchasing a small industrial unit can provide flexibility, control, and potential financial gains. This guide explores the market for small industrial units, offers tips for finding the right property, and outlines key considerations for buyers.
Market Dynamics
High Demand:
- The rise of e-commerce and small businesses has increased demand for small industrial units, especially in urban and suburban areas.
Versatile Applications:
- These units can be used for various purposes, including light manufacturing, storage, and as a base for service businesses.
Investment Potential:
- Small industrial units can offer strong returns through rental income and capital appreciation, making them attractive investments for small to medium-sized enterprises (SMEs).
Steps to Finding Small Industrial Units for Sale
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Utilize Online Property Portals:
- Websites like Rightmove Commercial, Zoopla, and EG Propertylink list available small industrial units. Use filters to narrow your search by location, size, and price.
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Consult with Commercial Estate Agents:
- Engage with agents specializing in industrial properties, such as Savills, Knight Frank, JLL, and CBRE. These professionals can offer tailored advice and access to exclusive listings.
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Explore Industrial Parks:
- Visit industrial parks and business estates in your desired area. These locations often have multiple units available for sale.
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Attend Property Auctions:
- Property auctions can provide competitively priced opportunities. Auction houses like Allsop and Acuitus frequently list small industrial units.
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Network Locally:
- Join local business networks and chambers of commerce to hear about opportunities through networking events and industry connections.
Example Listings
Small Industrial Unit in Birmingham:
- Location: Aston, Birmingham, B6
- Description: Modern small industrial unit with 5,000 sq ft, high ceilings, loading docks, and office space. Convenient access to the M6.
- Price: £600,000
- Agent: Knight Frank
Storage Unit in Manchester:
- Location: Trafford Park, Manchester, M17
- Description: Secure storage facility with 4,000 sq ft, 24-hour access, and CCTV. Close to the M60.
- Price: £500,000
- Agent: Savills
Small Industrial Unit in London:
- Location: Park Royal, NW10
- Description: Versatile unit with 6,000 sq ft, loading bays, and office facilities. Excellent access to the A40 and North Circular Road.
- Price: £750,000
- Agent: JLL
Key Considerations for Buyers
Location:
- Choose a strategic location that suits your business needs. Consider proximity to transport links, suppliers, and customers to minimize logistics costs and improve efficiency.
Size and Layout:
- Ensure the unit has adequate space for your operations, including storage capacity, loading areas, and office space. Consider future growth and flexibility.
Condition and Facilities:
- Inspect the condition of the unit and ensure it has essential facilities such as heating, ventilation, security systems, and sufficient power supply.
Planning and Zoning:
- Verify that the property is zoned for your intended use. Check local planning regulations and potential restrictions.
Financial Viability:
- Evaluate the financial aspects, including purchase price, potential rental income, operating costs, and return on investment. Consulting a financial advisor is advisable.
Legal Due Diligence:
- Engage a solicitor to conduct due diligence, reviewing the property's title, existing leases (if any), and any existing liabilities.
How Fraser Bond Can Assist
Market Analysis:
- We provide detailed market analysis to help identify the best opportunities for purchasing small industrial units.
Tailored Property Search:
- Our team assists in finding small industrial units that meet your specific requirements, leveraging our extensive network and market knowledge.
Due Diligence:
- We conduct thorough due diligence, including property inspections, legal reviews, and financial assessments to ensure a sound investment.
Negotiation Expertise:
- Our experts negotiate favorable terms and prices on your behalf, leveraging our experience and market insights.
Financing Solutions:
- We help explore and secure financing options, working with a network of lenders and financial advisors.
Post-Purchase Support:
- We offer ongoing support post-purchase, including property management, tenant sourcing, and maintenance coordination.
Conclusion
Investing in a small industrial unit offers numerous advantages, including flexibility, control, and potential financial gains. By leveraging expert advice and conducting thorough due diligence, you can secure a property that meets your business needs and supports growth. Fraser Bond is dedicated to providing comprehensive support throughout the acquisition process. Contact us today to learn more about how we can assist you in finding and purchasing small industrial units.
