Home News Alternative Investments Warehouse Investments: How To Earn More Rental Income

Warehouse Investments: How To Earn More Rental Income

empty room of modern storehouse

We’ve spoken about the various property investment types before. Residential investments are the most common – this involves buying houses, flats, and other properties people live in. Then, you have commercial real estate, which includes offices, restaurants, and different buildings designed for businesses to operate out of. The final type is an industrial property investment; things like warehouses, factories, and the like. 

Today’s post will center around warehouse investments and how to demand more money from rental payments. That’s the core way to generate a return on this particular investment; you buy a warehouse and rent it out to a company that needs it. 

With that in mind, how do you charge the highest rental prices possible? Let’s review some key changes or alterations you should make to your warehouse so it’s more impressive and commands a higher rental value. 

Provide Storage Options

Most businesses rent warehouses for storage purposes. They store all their stock here, and it’s where they process orders and ship them out. Consequently, providing your tenants with a host of built-in storage options makes their lives a lot easier. They won’t have to pay to create storage solutions; everything is there for them. 
This can include simple ideas like pallet racking so there are plenty of shelves full of pallets ready to be stacked. The company simply loads their stock on these pallets and they’re instantly easy to move around and locate. Implementing storage options that improve the warehouse layout can also be more appealing to prospective businesses. They spend less time preparing everything as all they need to do is transfer their stock to this easy-to-use layout.

Improve Energy Efficiency

Companies are always looking to save money on business operating costs. With a warehouse, energy costs are a big concern. They need to ensure the warehouse is at the right temperature, not to mention all the lighting and machinery that may also be used throughout. 

If you make your warehouse energy efficient, it immediately becomes an attractive place to rent. Prospective tenants will pay a higher rental price as it means they save money overall thanks to the decreased energy costs. Simple solutions include adding solar panels to the roof as a source of renewable and free energy. Or, even easier, using eco-friendly lighting that doesn’t cost much money to run. 

Implement Excellent Security Features

When a company rents a warehouse they’re filling it with valuable items. The contents can be worth hundreds of thousands of dollars – maybe even millions in some instances. More importantly, if any of these items get damaged or stolen it will mean the business loses a lot of money. They can’t make sales and have to deal with the costs of replacing lost or damaged stock. 

That’s why your warehouse should come equipped with the latest security features. Make your tenants feel safe and they’ll be inclined to pay a premium price for your warehouse. A business would much prefer to spend more money every month if it means they get a dedicated 24/7 on-site security team with CCTV cameras and night-vision sensors all over the premises. 

At the end of the day, driving rental prices up for your warehouse investment is all about focusing on the tenant’s needs. Think about ways to attract more companies to your warehouse and you can raise the price due to the extreme demand. You’ve got a hot property and everyone is eager to pay for it!

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.