Industrial property management is a subtype of commercial property management services that comes with its own unique set of needs and challenges. While it may share some management characteristics with other commercial property types, such as retail and office, industrial property management also has some distinct considerations.
In this article, we’ll take a closer look at industrial property management and the specific needs, services, and details that make it different from managing other commercial properties.
Whether you’re an industrial property owner looking for more efficiency or an experienced portfolio holder needing tailored solutions, understanding these requirements will help you get the most out of your industrial properties.
Let’s dive in.
What Is Industrial Property Management?
The term industrial property management refers to property management focusing specifically on the oversight and improvement of industrial real estate assets and property types.
Some examples of industrial property styles include:
- Warehouses
- Factories
- Storage Facilities
- Distribution Centres
Whilst the term industrial property management sits under the broader category of commercial property management, it is also made up of several sub-classifications which each have their own unique requirements from industrial property managers.
Let’s explore these in more detail.
Industrial Property Types
Various types of industrial properties come with their unique requirements, which are applicable to both tenants and property owners. Here are some of the most common types of industrial property you might find in Perth:
Light Assembly:
This refers to the use of industrial space for the assembly of products from smaller parts, where the property is typically smaller and less customised when compared with manufacturing facilities. Some examples of light assembly industrial properties include office space, storage space, and assembly space.
Flex Warehouse:
An industrial property type with multiple uses and applications designed to be adaptable to the changing needs of businesses, typically having features like high ceilings, loading docks, single-story parks and flexible floor plans. Some examples of flex warehouse industrial properties include warehousing, distribution, light manufacturing, research laboratories and office space.
Bulk Warehouse:
These are generally larger industrial properties with a large floor space ranging from tens of thousands to millions of square metres, with ample space for storing, sorting and distributing products (often regionally) with easy access for incoming and outgoing delivery vehicles. Common examples include fulfilment centres, warehousing, manufacturing companies and third-party logistics (3PL) providers.
Heavy Manufacturing:
This is an industrial property type that accounts for a majority of larger manufacturers, usually classified as either plants or factories. These usually have customised features to accommodate specific machinery, vehicles and equipment, with applications across a range of industries including automotive manufacturing, metal foundries, chemical processing and shipbuilding.
Mining and Shipping Locations:
There are some instances where mining and shipping companies as classified as being industrial properties due to the location and layout of their headquarters and operations. Aside from mining and shipping companies, these industrial property applications also extend to oil and gas exploration, port and terminal facilities, mineral professing, shipbuilding and repair yards.
Key Industrial Property Management Services
Industrial property management requires the same core services as other commercial property types, including:
- Accounting and finance – collecting rent, developing budgets and forecasts, financial reporting.
- Repairs and maintenance – scheduling ongoing maintenance, managing repairs, conducting inspections, addressing tenant requests.
- Industrial tenant management – managing leases, finding/screening/securing quality tenants, and addressing tenant needs.
- Advertising, leasing, negotiating – advertising vacant properties, showing to prospective tenants, negotiating lease contracts.
- Asset management – tracking occupancy rates, rental income, overseeing property value
- Facilities management – maintaining on-site equipment, regular property inspections, and addressing service requests.
- Documentation management – centralised records storage, supporting collaboration.
- Commissions management – managing agent invoices/payments, automating back-office operations, real-time analytics.
However, industrial properties also have unique needs beyond these traditional commercial property management services. This includes specialised knowledge of operations, infrastructure, regulations, utilities, and tenant suitability.
The complex nature of industrial properties means managers need tailored services, expertise, and proactive risk/maintenance management. With the right expertise, industrial property managers can handle the nuances and optimise management.
Specific Considerations for Industrial Properties
When looking for a commercial property manager for an industrial property, you’ll want to make sure that they are adept at handling the following peculiarities of industrial property management:
Diverse Property Types
Industrial properties encompass a wide range of facilities, from warehouses to manufacturing plants. Each type has specific needs, such as specialised storage requirements and infrastructure for production processes. The best industrial property managers will be adaptable with their services to cater to these unique demands.
Zoning and Regulations
Industrial properties are subject to different zoning regulations and environmental considerations compared to other commercial properties. Compliance with these regulations is crucial, so commercial property managers dealing with industrial properties need to know how to navigate them effectively.
Utility Management
Industrial properties often have high utility consumption, including electricity, water, and gas. To optimise your investment, your commercial property manager should have experience negotiating favourable utility contracts and be highly responsive to ensure uninterrupted services to maintain industrial operations.
Risk Management
The industrial sector is inherently riskier due to the potential for accidents, fires, or environmental incidents. Especially for this commercial property type, your commercial property manager must be prepared with robust risk management procedures in place, including insurance coverage and emergency response plans.
Tenant Needs
Industrial tenants often require specialised facilities and infrastructure. Property managers must be well-versed in handling tenant requests related to infrastructure upgrades, equipment installations, and safety measures specific to industrial operations.
Tenant Selection and Retention
Finding suitable tenants for industrial properties can be challenging due to the specialised nature of the facilities. Industrial property managers must have an extensive network and the ability to assess tenant suitability based on their specific needs.
With an understanding of these key considerations, property owners can partner with an experienced commercial property manager to successfully operate and maximise returns on their industrial real estate assets.
Experienced Industrial Property Management
Tired of settling for mediocre commercial property management? We understand – we’ve been in your shoes! As commercial property owners ourselves, we know you deserve better. That’s why we started Vast Commercial Property – to provide Perth investors with commercial property management services that maximise value and boost your bottom line.
With specialised experience in industrial property management, our team has the knowledge required to optimise every aspect of your industrial assets.
Experience the Vast Commercial Property difference for yourself. Contact us today to learn how our hands-on, results-oriented approach can optimise your industrial property and take your investments to the next level.