Considering a purchase that includes an old warehouse/industrial use building that consists of just over 8,000 sq ft. Several overhead doors. Two levels, technically, but the lower level is not high ceilings. None of it is super high ceiling, old construction.
I have had residential rentals but never commercial real estate.
Anyone have experience leasing out space in a building that size? Or, any creative ideas to make money with it? It won’t make or break the deal, but I can’t just say “I’m gonna make gun” or “kids playroom.”
Well, first don’t limit yourself to your own (or our) imagination.
The commercial rental market is tight around here. How about your area? Let potential tenants view the space and use their imagination. Somebody is gonna find it perfect, others will find it good enough.
I’m gonna guess you don’t want to jump right in to dumping cash into it for tenant improvements but dividing it up and finishing some spaces would open up some possibilities. I have seen similar places split up into several small offices with shared co-working spaces and shared amenities like conference rooms, and meeting/presentation rooms. Such environments are popular with small businesses/start ups.
If marijuana is legal in your state then you’ll probably get A ton of traction there if the electrical and venting is sufficient.
Office shares are really good investments in hot markets, they can be okay in cooler markets. Lots of investment cost to boot it up and then time spent managing the property or paying someone else to manage it for you.
I’d look into the market near you and see where the best opportunity is specific to what the needs of the marketplace is.
Have you ever wanted to run a paint company or roofing company?
What THCDDM4 said. If the utilities are there, weed grow rooms are huge in my area. But if not, there’s always plumbers and electricians looking for storage space. Depending on the area, car collectors often rent as well. Generally they put nice floors in and paint it to look good as well.
And 8000sf if it has multiple overhead and pedestrian doors can be divided into sections for multiple tenants, especially if the plumbing is there for bathrooms (or just have common bathrooms that meet code).
Could look into indoor boat/rv/car storage if the place is set up for something like that. I had a buddy do something similar and he said it is easy money
Is it Zoned?
Because if it’s not and it’s old construction, I would check for asbestos, No asbestos, I would call a plumber, if it passes I would turn it in to 6 Apartments and go home and count my Money.
Looking for investors?
Well you asked for it.
If you are close to a major road get a big sign. “Beer Guns Tits”
Getting the permits for this joint will be a hassle. But who wouldn’t stop and pull in there?
Zoned industrial. I’m guessing asbestos is present, as construction is 1940’s and some additions later. But would check. As far as investors…I’d talk if things start moving.
It is crazy the things you can get into with storage like that. A buddy is renting out half his building to a guy that makes custom dog food.
Personally a weed house would make me nervous that someone would mistake me as the owner and try to do you wrong. Either at the place or following you home from the place.