Just bought a 116,000 sqft Big Box Warehouse in prime retail/mixed use location...what should I turn it in to?

Question

Just bought a 116,000 sqft Big Box Warehouse in prime retail/mixed use location...what should I turn it in to?

Answer 1

Where I am located in (Silicon Valley) Santa Clara County California small businesses have need of warehouse space and office space.

Large warehouses are often divided up into a number of smaller warehouse spaces that can be rented to different businesses and also divided up into office space. This appears to have been a profitable use for warehouse space where I am located.

Answer 2

Assuming it's vacant, I'm sure you've consiered or approached Wal-Mart. Obvious use.

For that size, I'd look at a divide and conquer. Here are some suggestions that could be appropriate, depending on your zoning and vicinity:

1. Gym--good rent payer. They can pay up to 40% of their gross in rent. High parking demands.

2. Loft--residential lofts can be profitable IF they are not overdone in your area. If you're clearly in the suburbs, forget it.

3. Bingo Parlor. GREAT use for a large space, and YOU should be the operator! Very profitable, but it is a BUSINESS, not a tenant. You have to find non-profits to sponsor you and rent space by the day or hour.

4. If your area is strong Hispanic, flea markets are very good.

5. Batting cages, indoor golf range, indoor soccer, all subdivided out to form a "sports complex." Again this is at first a business; you will need to find individual operators to take the leases and eventually get you worked out of the deal.

Consider attending an ICSC conference; there's a big one coming up in Florida in February.

Answer 3

If you do not have a plan then why did you buy it? Seems that you are "gambling" and not investing because of the question. I would have had a plan AND a client with signed lease in hand BEFORE spending money on what is now O2 storage.
Commercial property values are based on INCOME and since you do not have any nor a decent plan to create income; you overpaid for the building so good luck finding the next "greater fool".

Answer 4

You mean you didn't plan out your "end game" before you bought it??

If retail is the highest and best use, you definitely need to get involved with the ICSC (International Council of Shopping Centers). As a prior responder indicated they have regional conferences throughout the year...also, they have a huge yearly conference in Vegas. Every retail broker, developer, owner goes to these events....and is where a lot of deals get done. You need to be a member to attend - here's their site - www.icsc.org

Answer 5

did you buy this through a realtor? if the realtor is CCIM certified, ask them what is appropriate for the area, as far as what is lacking in the community, and is needed... what i mean by that is simply, the reason for a lack of something might be that there is no need for it.. mixed use and office space is hot in a lot of parts of the country, but so is light industrial... your building class will also make a difference.. i mean is it class a, class b, etc.. is it normal to have NNN leases in your area?

Answer 6

What did you have in mind when you bought it? Do you plan to open some kind of retail store, or lease it out for retail or for storage?

Answer 7

depending on where you live, and your community, make something for kids! Some kind of skatepark or paintball place!
Kids will look up to you

Answer 8

skate park, if its a populated area. if not make it into like a ... whatever you want. but if its in a populated area make a skate park, you will make alot of money

Answer 9

you should have had that all planned out and ready to start implementing before you bought it.