Warehouse | light industry | heavy industry | factory building | multiple tenant | single tenant
An industrial building is a key element that is an integral part of a company’s production unit.
An industrial building is designed to meet the specific needs of a company. Accordingly, its market value depends on the usefulness and transferability of its components to another company. The more compatible a building’s design is with market expectations, the higher the return on investment.
This relationship between the building and the business operations can be expressed as follows: a warehouse-type industrial building is more universal in nature, while a light industry facility is more adapted to the needs of a company. A heavy industry facility that is purpose-built for a particular industry is even more specific in nature, and can only be reused by another company in the same sector. Accordingly, its value is based on the economic health of the industry it serves.
The detailed analysis of transactions conducted in industrial parks is an important factor considered by HPDG appraisers to identify the latest market trends.
- Identification of the property’s strengths and weaknesses
- Analysis of the building’s functionality with respect to market expectations
- Analysis of supply and demand for the given industrial park
- Assessment of access to the area, its evolution and reputation
- Assessment of the real estate market in the area
- Survey and analysis of comparable property transactions
- Comparison and positioning of the property in the market
- A lease review and financial analysis for rental property
- Proof of estimated value based on facts and market indicators