Is Investing in a Factory Worth Your Asset? – What You Need to Consider Before Investing
Investing can be challenging especially with today’s economy. They are on thin ice, illiquid, long-term investments that you need to do an amount of work to increase your chances of success. But factories with the right potential can be a great investment – if you know what to look for.
Seek Help From Professionals
The risk of commercial properties are much higher than residential properties because – they offer higher returns. Which also means that the amount of research efforts require more than a person to complete. Get in touch with people with experience in this field. It is always better to have a second, third or fourth advice rather than going through alone.
Location is no doubt the key factor in all kinds of property investments. As for factories and manufacturing sites, the location includes cost used by lorries and trucks to transport goods from ports to factories and vice versa. This is why location is important. You should also put into consideration for locations that are close to seaports and airports.
Residential houses consist of terrace, semi-detached and bungalow houses. Likewise, there are factories and warehouses also come in terrace, semi-detached and bungalow options. In the past two decades, terrace factories are the popular options. Nonetheless, nowadays manufacturers choose to operate from semi-detached factories due to the expansion of the industry and also for corporate image. The employees could park their cars at the private parking lot in the semi-detached factory, which helps them not to get fined or hinder lorries or trucks from loading or unloading. It is also easier for trucks or lorries to enter the factory as the gates are wider for semi-detached factories.
Nowadays, most factories have built-in offices and it would be convenient as factory owners would not have to rent other offices or refurbish the place for the admin staff. Moreover, to provide a conducive environment for work as well as to uplift the image or reputation of the company, the designs of the workplace plays a vital role. Higher values would be given to such factories by the valuer.
Immensely high electricity supply
Usually, manufacturers would require 200Amp of electricity. It is also the minimum requirement of electricity supply. Higher supply of electricity may be needed for some heavy manufacturers. It would be a requirement and a hassle for these manufacturers to apply to Tenaga Nasional Berhad (TNB), not to mention they are costly as well.
As an industrial property investor, one should take into account a technical part what most residential and commercial investors would not consider. To prevent the entire building from falling down, one has to find out the weight limit which the factory could hold. Generally, 15kN/m is the minimum weight that a good factory should be able to withstand.
Size makes a difference
Generally, a factory should have approximately 15,000 sq ft in land size and approximately 10,000 sq ft in build-up area. It would be ideal if factories have this size. Smaller size factories affect how manufacturers work especially for the trucks and lorries to park and load materials. Furthermore, there would not be enough space for machinery as well. On the contrary, big sized factories might affect the owners in renting out the factories because the factories are too big or is it more difficult to bulldoze them in the future.
Want to know more about investing in commercial property? Let us help you answer your doubts!
About Us: SHR Properties
A real estate company which offers comprehensive services including real estate property investments, development, sales, marketing, operations, and management. The company creates quality urban projects based on customer-oriented mode of management for a better living and working environment. They also provide professional expertise and resources, along with asset management risk analysis and other services.