Should you sell or rent your warehouse?

What are the advantages of renting a warehouse?

Renting a warehouse is one of the most profitable investments. Indeed, the rental yield is higher in commercial real estate compared to residential real estate. It is also common for the gross profitability generated by renting a warehouse to exceed 5% and even reach up to 10% for well-located premises.

Another advantage of renting a warehouse is the low risk of unpaid rent and very limited rental vacancy. Indeed, a warehouse is often a strategic device for a company. It therefore cannot default on rent payments and take the risk of no longer being able to enjoy the building.

Furthermore, as a landlord, you can ask the tenant to take charge of certain maintenance work, tax charges such as property tax, and management fees. A good trick to reduce costs and maximize the rental yield of your warehouse!

What are the advantages of selling a warehouse?

Selling a warehouse also has its attractions. It is an interesting option to quickly bring in liquidity. Welcome cash inflows to launch a new project, invest in a new warehouse, strengthen your company’s cash flow, or settle your debts.

The question remains how to find the ideal buyer for your warehouse! Generally, there are several ways to look for potential candidates:

• Word of mouth;
• Real estate listing sites;
• Professional networks;
• Agencies specializing in business real estate.

Very often, using a professional real estate agency, like Allten, allows you to estimate the sale price well and find a buyer for your warehouse more quickly.

The criteria to highlight to sell or rent your warehouse at the best price

Several elements come into consideration for estimating the sale or rental price of a warehouse:

• The type of warehouse: goods storage facility, logistics warehouse, cold storage warehouse, workshop-warehouse…;
• The general condition of the premises;
• Technical characteristics: energy performance, ventilation, heating…;
• The surface area, volume and interior layout;
• Technical characteristics;
• Equipment present in the warehouse: shelves, pallet racks, handling equipment…;

Highlighting these elements when renting or selling a warehouse allows you to increase the attractiveness of your property and quickly find potential candidates.

The importance of location to sell or rent your warehouse quickly!

If you want to invest in commercial real estate, then buying a warehouse to resell it or rent it out is a serious option to consider. To put all the odds in your favor, study carefully the location of the warehouse for sale. Indeed, as with offices and commercial premises, the location of a warehouse significantly influences both its sale price and its rent.

A company wishing to buy or rent a warehouse will primarily look for premises close to its production site and with good connections to main roads. By having a well-located warehouse, you will increase your chances of quickly finding a buyer or tenant.

Good to know:

There is no exact answer to the question “Is it better to sell or rent your warehouse?“. Each case is specific and several factors must be studied in detail in order to make the best decision. Your business real estate agency Allten puts all its know-how and expertise at your disposal to help you choose the most suitable option. Do not hesitate to contact us for more details!