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Industrial Sub Categories

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Artyman1200

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So what IS the difference between an office warehouse, light industrial, and heavy industrial? Do you all typically get specific about the type of warehouse (storage, distribution, etc.) outside of the Cost Approach?
 

Abester

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Marshall Valuation has a good explanation of construction / physical differences.

Selection of properties (for comparison) that would generally be competitive with your property in the eyes of a typical market participant is what is important - not the classification.
 

Michigan CG

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So what IS the difference between an office warehouse, light industrial, and heavy industrial? Many times the improvements are similar, but the zoning is different limiting what type of business may locate in a certain location. Do you all typically get specific about the type of warehouse (storage, distribution, etc.) outside of the Cost Approach? I have a section in my reports called Description of Improvements and the property is detailed there.

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JT1974

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Dec 16, 2006
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Wisconsin
So what IS the difference between an office warehouse, light industrial, and heavy industrial? Do you all typically get specific about the type of warehouse (storage, distribution, etc.) outside of the Cost Approach?

Daniel,

Heavy industrial properties will generally have thicker floors to support heavier equipment, more electrical amperage and electrical services throughout the building (i.e. to support welders, robots, conveyors, cranes, etc.) and the heavy industrial buildings will typically have more substantial structural steel capable of supporting overhead cranes.

Warehouses typically have more overhead drive-in and dock doors than light industrial buildings and will generally have less electrical and plumbing components; usually just lighting and maybe a corner of the building with a charging area for the forklifts.

Light industrial buildings tend to have fewer overhead doors than warehouses and have built-in amenities to support light manufacturing (like widgets and parts of a larger product).

You will soon catch on as you go out to inspect a few of the varying property types and see the differences up close. However, in the mean time, just think to yourself "what was the building built for?" i.e. will the building be used to build cars (heavy industrial), build a couple of specific car parts (light industrial), or store car parts (warehouse).

Hopefully, that helps answer your question.
 

Artyman1200

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Jun 21, 2004
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Certified General Appraiser
State
Tennessee
Thanks Jason, that's what I was looking for
 
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