Tips for purchasing a warehouse | Austin Texas
updated February 2010

Alot of you may be looking to purchase or invest in a commercial property, specifically a warehouse or industrial type space in the Austin area. There are some key elements you should look at to make your purchasing decision an easier one. It has been my experience that the “usual” strategy is to start searching for what is available. Perhaps a person has decided to do this on their own, and if this person is not actively involved in commercial real estate it can be a highly inefficient choice.

Secondly, what comes into play *(should be primary) is the financing piece of the puzzle. Are you looking for a warehouse type property “before” you have your financing in order? Don’t kid yourself it happens alot , you may find a property you like and find out you can not get the financing! Especially in today’s market, financing is the integral obstacle that can keep you from being able to purchase that industrial property you have always wanted. Even if you have a commitment letter there is still a possibility you will not get funded before or at closing.

So, here are a few tips to help you locate an office warehouse or industrial propery for sale in the Austin area.

1. Sit down with your current lender , the lender or financial institution you have a relationship with. Ask them if you were to purchase an office warehouse or industrial type property what the probability of success is for you to be pre-approved. Keep in mind , if you are an owner-user you can go with a 10% downpayment using SBA type loan programs, there are several out there and your lender can help you with this. You can visit www.sba.govfor more information. If you want to use the SBA, choose the Preferred Lender, these lenders are called preferred cause they do not have to send the underwriting thru to the SBA , so your loan gets approved in house and it is much faster. The other type of lender is a Cerfitied Lender, these lenders are approved by the SBA but they have to send your paperwork thru to the SBA for approval. Once you have your financing approved by the SBA or your lender, then you know what you can afford. Makes sense doesn’t it?

From there, you should seek out a good broker that will canvass the area for you. Your broker will have a good idea of what the market is bearing price wise and where to search for the type of property you are looking for based on your location criteria. The tools I use to help my clients cost money, why wouldn’t you leverage these tools to help you with your search, best of all it doesn’t cost you a dime! There are alot of steps involved in negotiations, research and contract review and all of these tasks can be taken off your shoulders by using a good broker.

We specialize in tenant representation and buyer representation for industrial warehouse type properties in the Austin area. You should always utilitize a knowledgeable broker to help you navigate the industrial warehouse market to ensure you are getting the best lease or purchase possible.
Pricing and market rate information on this site update quarterly, however the market snapshots are real time and updated monthly.

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