Alternate income on extra building space.

huleo · Oct 12, 2021

So we are looking at another building. Probably not because we 'need' it right now, but because we could use a little space and the location is right. Problem is it is WAY bigger than we need. But if we can find a way to optimize, that would help.

I am pretty resistant to an outright lease for space as this opens my doors to all sorts of people. However, do what we must. I really hoped to rent out as storage, but no way to gage the interest until we own it.

I really had ideas to get into other sectors of business, having nothing to do with mfg. Something that needs an extra 20-30k sf. Logistical assist, docking, distributing, etc.

Any thoughts or ideas?

AndyF · Oct 14, 2021

huleo said:
So we are looking at another building. Probably not because we 'need' it right now, but because we could use a little space and the location is right. Problem is it is WAY bigger than we need. But if we can find a way to optimize, that would help.

I am pretty resistant to an outright lease for space as this opens my doors to all sorts of people. However, do what we must. I really hoped to rent out as storage, but no way to gage the interest until we own it.

I really had ideas to get into other sectors of business, having nothing to do with mfg. Something that needs an extra 20-30k sf. Logistical assist, docking, distributing, etc.

Any thoughts or ideas?

Self Service mini storage and RV, boat and car/truck storage. This guy is doing it in old department stores at shopping malls. Why a Rochester man is buying up empty space in dying malls, including Great Northern - syracuse.com

Milland · Oct 14, 2021

If you deal with "unknown" people letting out space, make sure your insurance covers you for all the risks. Be especially aware of any laws in your state that could effect you if anyone is doing something illegal in your premises (drug labs, whatever), as you don't want to risk forfeiture of your property...

johfoster · Oct 15, 2021

huleo said:
I am pretty resistant to an outright lease for space as this opens my doors to all sorts of people. However, do what we must. I really hoped to rent out as storage, but no way to gage the interest until we own it.

Post craigslist/facebook marketplace ads for warehouse storage rental in your area. Gives you a quick idea how much interest there might be...nobody replies vs 10 responses in two days.

I used to just rent out some of my yard space to another guy (completely fenced off from the rest of our yard), and I know I wouldn't want that situation again. Wasn't much wrong with the renter I just didn't like the liability or distraction of that arrangement.

DDoug · Oct 15, 2021

Procure:
1. Liquor license
2. Qty (1) "Brass Pole".

ronaldbeal · Oct 16, 2021

If you are located near big industrial parks:

3pl (3rd Party Logistics) Short term or long term warehousing.
What you'll need:
Pallet racking
forklift
Insurance
A salesperson.

Essentially it is an overflow warehouse... Imagine a manufacturer can't complete their widgets because they are waiting on parts from China... But the rest of the parts of the widgets are taking up their small warehouse volume... 3pl warehouses can take their waiting stock and store it until they need it again...
A lot safer than letting random strangers in.. can be a decent revenue stream.
Just takes the effort to get established abong the local warehouse scene.

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Alternate income on extra building space.

huleo

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AndyF

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johfoster

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DDoug

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ronaldbeal

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