Secondary Industrial Markets and demand for refrigerated building real estate.

Secondary Industrial Markets and demand for refrigerated building real estate. There always is a limited demand in secondary industrial markets. This demand is simply defined as "distance” from the refrigerated building that is for sale or for lease. The building's demand is “distance” from the building, generally held to be 20 miles in a small industrial market. Whatever business the prospect is involved in, and will use of an industrial freezer warehouse or cooler warehouse areas of building, will then that prospect will always have a customer base that supports the refrigerated food distribution or refrigerated food processing business of the refrigerated buildings prospect. Every industrial building's customer base has a tolerance on how many miles they will drive to consume/purchase any certain goods or services. There sometimes is some variance from that "20 mile" figure according to what type of refrigerated goods or refrigerated services that will be purchased. The more frequent the consumption/purchase the less the mileage tolerance will be of the refrigerated building prospect’s customer base. Most typically the prospective purchaser or lessee for industrial building in these smaller industrial markets will have outgrown their freezer and cooler facility. Sometimes the purchaser may have been in several different facilities and will need to consolidate their operations for one of two reasons. The first reason is that a rental property was no longer available to the prospect to occupy, for such reasons as the end of the lease term or eminent domain. The second reason is that consolidation of operations into one single location will now result in lower operating costs for the prospect’s business operations. Usually most of these businesses are owned by individuals that have a desire to purchase a refrigerated building for sale, rather than lease a refrigerated building, so as to be able to build equity in the industrial freezer or cooler building and therefore increase their own personal net worth. Any prospective purchaser of a refrigerated building will look at the new building replacement cost [new construction] when considering buying a used refrigerated food processing or refrigerated distribution building. When analyzing of new construction, there is usually not any recent refrigerated building sales comparables in the secondary industrial market. When marketing industrial real estate in a secondary industrial market it is always important to remember that the highest likelihood that the best prospects for the sale or lease of the refrigerated facility will be from within a 20 mile radius of that refrigerated building for sale. As the real estate broker saying always goes, "sell it to the neighbor". Hawk Distribution Services, LLC has 26 years of experience as refrigerated building real estate brokers. Please contact Jim Cronin at 314-994-0577 or e-mail J.Cronin@hawkds.com to discuss your company's refrigerated building real estate needs. To view Hawk Distribution Services, LLC’ refrigerated buildings available for sale or refrigerated warehouse space for lease in St. Louis, Missouri and also in Kansas City, Missouri and the Midwest connect to www.hawkds.com