Hello and welcome to the new year. I hope you have had a good break and are set to take on the challenges of 2010. So far, I have talked in general terms about the principles of the commercial property sector. This week, I would like to share some knowledge with you on more specific facts relating to the sector.

I have discussed one of the primary drivers of what makes a good commercial property investment, location, and now will touch on other factors relevant to various classes of property.
With industrial buildings, tenants are typically more concerned these days with the vertical storage capability of the building as opposed to the linear capability. Again, as with most things in property, the reasoning is simply to do with how the building can function most economically from the perspective of the tenant's business.
A large percentage of industrial buildings are used for the purposes associated with warehousing and storage. It therefore makes sense to maximise storage ability in a vertical fashion as this dramatically reduces costs on a square metre basis. It is not surprising to find therefore that older industrial space, with what is termed a low stud height (3-7m2), is more difficult to lease than a modern building with a decent stud height (8m2 and above).
Coupled with this demand for a high stud height is the requirement for the flooring to be constructed to a standard sufficient to withstand the vertical loading imposed upon it. It is not hard to imagine the vertical force exerted by a stacking system 10 metres high housing pallets of heavy stock.
Again, plentiful roller door access and large yard area to allow for truck manoeuvering are essential.
Next week I will look at the specific requirements of office and retail space.
Until then, have a great week.