Important Value Drivers for Owner-User Buyers: Mid-Counties Industrial Property

As we continue to work with local buyers and sellers, we are finding more owner-user buyers are looking beyond the basic size and location functions of real estate in search of real value for the industrial property purchase they are considering making in southern California. Certainly for some, it is simply a function of price and exit strategy. But for owner-user buyers, those looking to take up residency and occupy the property they are purchasing for their existing business, features such as ceiling height, sprinklers, yard and power supply are becoming increasingly the drivers in determining value.
​A building at the right size and location, without these additional features, would be very costly to upgrade, thus putting downward pressure on the achievable price for the property. Additionally, many buyers will look for significant discounts to take on the project to renovate or upgrade a property. Properties with more versatile features will not only command more value, but having them in place will reduce the time to achieve a successful transaction when the property goes on the market.

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