In real estate brokerage, the industrial property market offers good levels of entry and activity. Why is that so? It is because the property type is ‘entry level’ for investors both in complexity and cost. It is not hard for an agent to know what is going on in the industrial market place and get the facts of what a property investor in that segment may be looking for.
The aspiring brokers and agents that are starting up in the industry will find it easier to understand industrial property first and foremost. From that point other property types can be incorporated into market activities and prospecting.
From a career perspective, and to help you get started in industrial property sales and leasing, here are some ideas:
- The industrial property market is usually the first to respond in an upturn and a downturn. Watch the shifts in the economy to capture the market changes and listing opportunities.
- Businesses centred on manufacturing and bulky goods usually need larger premises to operate from. They will chose locations that are relevant to regional raw materials, transport, customer demographics, occupancy costs, and business operations. This then says that a top agent in industrial property will spend substantial time getting to know the local businesses and what they are looking for in business operations, expansion needs, and locational change.
- Some properties in this category can be tenant and business specific. If that is the case, any landlord should take care in structuring a longer lease with appropriate make good clauses at lease end. Also allow a reasonable lead time for a tenant making a decision on the exercise of an option. If the landlord needs to find a new replacement tenant for a highly specialised property, it can take some time to achieve the placement.
- In this market segment, a top industrial property agent will work on both leasing and sales opportunities. One thing can very well lead to another.
- With the predominance of industrial parks and the clustering of industrial tenants and businesses into the one location, there are special factors of knowledge that apply to the title types and the permitted uses under the leases. Get to know how these things work and can fit into the zoning and planning regulations for the local area.
- Industrial properties will have configuration and improvement issues to understand. That will include hardstand, warehousing, office space, staff amenities, car parking, security, and loading areas. Use and configurations will change. Get to know what tenants and businesses are looking for locally in property choice and occupancy.
So this is a good market type to enter into as a commercial and industrial property agent. If you enjoy the market segment you can specialise for many years and achieve.