Every piece of real estate has a value. Obviously, that value varies depending on size, location, infrastructure in place, and countless other factors that could have an affect. Industrial warehouse space is usually used for commercial real estate development and big businesses, but many times those companies go out of business leaving manufacturing warehouse space available to the public or private buyers.
In fact, warehouse development is on the rise and many times its done so without a signed tenant. About 62% of the 59 million square feet under construction by the end of the third quarter in 2013 was built without any real purpose, known as speculative building. The storage and warehouse leasing industry is worth an estimated $26 billion in the United States. Most people wouldn’t be interested in this kind of space, but here are three unique ideas to utilize industrial warehouse space you might acquire.
1.) Host Events: People are always looking for a place to hold special occasions and events. Whether it’s a wedding reception, children’s birthday party, or company function there needs to be enough space to fit however many people are expected to attend. An empty industrial warehouse space is the perfect place to do all those things and more. Sure, it might not seem like the classiest or aesthetically appealing place at first glance, but with the right interior design and setup it can be. Plus, with a giant roof overhead there’s no chance of getting your parade rained on!
2.) Alternative Housing: One of the most innovative uses of renting a warehouse can be found on the West Coast where one young couple turned one into an alternative housing development of sorts. They took a commercial warehouse and filled it with giant storage shipping containers and rented those units out to people looking for affordable housing options.
3.) Car Storage: This might be the option with the most profit potential, especially if you live in a location like the Northeast. People love to buy, own, and drive expensive luxury cars, but they won’t stay very new if left out in the elements for long. Many people don’t have the garage space of their own to house multiple cars they won’t be using in the wintertime, so why not open a business storing these cars in a giant warehouse? It’s a great way to get a consistent flow of income if you can find enough clients with little to no maintenance required on your part.
If those business ideas are a little to far-fetched for your liking you can always open the space up for traditional storage rental. The demand for such space is expected to to keep growing at an average rate of just over 7% annually.