Why Owner-Occupied Industrial Properties are a Smart Investment

If you’re an investor or an entrepreneur looking for a wise investment that provides financial and operational benefits, you should consider investing in an owner-occupied industrial property.

Owner-occupied industrial properties are industrial buildings where the property owner occupies the building. These properties range from warehouses, factories, storage spaces, and other industrial-type spaces.

The aspects and benefits of buying and occupying your own industrial building are significant. Let’s explore some of them:

Control and Customization

One of the main benefits of an owner-occupied industrial property is that it gives the owner maximum control over their operations.

When you own the building, you can customize the space to suit your unique needs, and you won’t have to worry about landlord restrictions. Additionally, you’ll have complete control over maintenance and repairs, which can reduce your costs over time.

Many industrial property owners run their businesses from their buildings, so having the flexibility to adapt and change their space to fit their evolving needs is invaluable.

Expand your business

Another benefit of owning an owner-occupied industrial property is using it as collateral. If you secure a loan against the property, you can use those funds to expand your business, hire more staff, or add new equipment.

The property’s value can also appreciate over time, which could lead to increased equity and more borrowing power down the line.

Upgrading to a more extensive property

One downside of these properties is that they tend to be smaller, around 8,000 square feet, which may not be enough for your needs. On average, 15,000 square feet is the recommended size for these properties.

However, many property owners choose to sell their existing property and use the money for a 1031 exchange, which allows them to defer their capital gains tax and purchase a larger space that better fits their needs.

Limitations

It’s important to note that owner-occupied industrial properties can only be occupied by the owner or their employees.

This means that trade builders who build and sell properties as merchandise cannot use this investment option. So, if you’re not an investor or an entrepreneur, this type of investment may not be the best fit.

Investing in an owner-occupied industrial property can be wise for business operations and financial reasons. However, it’s essential to know the limitations of this type of investment, such as the property size and who can occupy the space, before diving in.

If you’re interested in exploring this investment further or need help finding the right property, a Commercial Real Estate Broker can guide you in the right direction.

 

Ready to buy an owner-occupied industrial property?

 

Let’s talk!

Why Are Industrial Brokers Essential for Your Business?

Why Are Industrial Brokers Essential for Your Business?

Over the past ten years, industrial real estate has experienced a surge in interest from commercial real estate investors and business owners, largely due to the e-commerce boom. If you’re looking for industrial space to invest in or operate your business out of,...
What Is Real Inflation?

What Is Real Inflation?

Buying commercial real estate is a great way to fight against inflation. Unlike renting, where rates can change, owning commercial property helps protect and grow your money as prices rise, making real estate a top option for investors. Real Inflation vs. the Consumer...
How To Choose the Right Retail Broker in Texas

How To Choose the Right Retail Broker in Texas

For many business owners, owning or renting their own physical commercial retail space is the dream. While you may have already established an online presence or dabbled in pop-up sales, having a retail space that is uniquely yours can foster a lively community and...
What to Consider When Renting a Restaurant in Houston

What to Consider When Renting a Restaurant in Houston

Based on recent industry insights, it's clear that the Houston restaurant scene is poised for growth, facing both opportunities and challenges. The city’s restaurant industry is vital, contributing significantly to the local economy and providing various dining...
How to Find the Perfect Restaurant Space for Lease in Houston

How to Find the Perfect Restaurant Space for Lease in Houston

Are you in the midst of launching your dream restaurant but struggling to find the perfect space for lease in Houston? The search for an ideal location in Houston can be daunting, given the city's vast and competitive real estate landscape. But what if there was a...
How To Invest In Commercial Property For Sale In Houston

How To Invest In Commercial Property For Sale In Houston

Investing in commercial real estate can be an intelligent way to generate strong returns, but researching properties, evaluating deals, and closing transactions requires diligence and expertise. As the fourth largest city in America, Houston offers entrepreneurial...
What To Look For in a Commercial Space for Rent in Houston

What to Look for in a Commercial Space for Rent in Houston

If you’re looking to start a business or expand an existing one, Houston, Texas, might just be the perfect place to do so. Houston’s culture of innovation, art, and technology can provide a solid foundation for your business. Are you ready to find a commercial space...
How to Streamline a Property Investment with a Commercial Real Estate Broker in Houston

How to Streamline a Property Investment with a Commercial Real Estate Broker in Houston

Finding the right retail space in Houston's dynamic market is challenging. Are you searching for a retail property that not only fits your budget but also positions your business for growth? The expertise of a commercial real estate broker specializing in Houston's...
Business and Life is a Team Sport: Having The Right Team Matters

Business and Life is a Team Sport: Having The Right Team Matters

Are you considering investing in commercial real estate in Houston? Whether you're a seasoned investor or a first-time buyer, having an experienced professional by your side can make a difference in navigating the complex world of commercial real estate. From finding...
Only 25% Believe That 2024 Is Going To Be Better Than 2023

Only 25% Believe That 2024 Is Going To Be Better Than 2023

As we begin 2024, the commercial real estate industry faces many challenges and uncertainties. From the slowing lending activity to the global economic recovery, businesses must be proactive in navigating these complexities. However, amid these challenges lie...