Are there any normal industrial uses that lower property value?
I have a light industrial shop-warehouse-yard to lease out and was contacted by a towing company to get it.  last tenant was an auto repair shop.  they would need to improve security, at their expense they said.  Any suggestions on potential problems or how it could negatively affect the value or even stigma or anything? I didn't get a good feeling based on TV shows alone and also don't know much on actual towing company operations.
[{"id": "eb61b3l", "text": "Technically the use should have no affect on the underlying value of the subject property if it is legal. There are some uses that might affect the value of surrounding properties though. Those would all involve either noise or smell nuisances. A great example being a chicken house that makes the area around it smell like shit.\n\nFor an industrial warehouse that is not going to be used for commercial warehousing, and is likely located in a small industrial park, or off the main road industrial corridor, the value is still going to be the value of the lease in place (or PSF value of the building with the NPV of the lease added on). Very simple stuff and the use of a towing company is going to be in line with any investor who would ever entertain the idea of buying such a property. \n\nEDIT: Maybe if it was being used as a homeless shelter, that would be an issue.", "replies": [{"id": "eb64k8e", "text": "That makes good sense. thank you", "replies": [], "depth": 2}], "depth": 1}, {"id": "eb65475", "text": "Yes. \n\nTire storage lowers property value, getting that tire smell out of the building is tough. Anything that puts a cloud on your phase 1 environmental also lowers property values, so if there is a spray booth, oil change ect, \n\nFor what you are talking about, I would not worry about it. A tow company is a light use. You may need to get a sign off with the city, since neighbors may complain. \n\nIf they don't pay rent, well, you are stuck with a bunch of crappy cars you cannot sell. \n\nThey want a yard, the building is not of a huge use to them. So when you spell out your lease, you need to charge rent based on the land SF and not the building SF. You want to limit hours they can operate in, and you want to make sure they do NOT live on the property. \n\nRemember that scene in breaking bad where Jessee has to break into the RV and then spends the night covered in shit? That was a tow yard. \n\nThat will be your place. ", "replies": [{"id": "eb6n6n6", "text": "You bring up a unique edge case about the cars.  \n\n\nA tow yard is capital intensive enough where you are guaranteed to have secured creditors (ie banks) who will put into motion an organized liquidation or reorganization process.\n\n\nThe bankruptcy trustee would hire another tow company (and possibly later an auction co) to come in and sort it out.  The judge would work out how the proceeds, if any, are divided between the lender(s), the landlord, and the other creditors.\n\n\nUnder no circumstances would a landlord have to deal with a bunch of angry retail \u201ccustomers \u201c.  The business of forcibly taking things from consumers is heavily regulated and there are astronomical differences from town to town.  You wouldn\u2019t want to try, even if you could, which you can\u2019t.", "replies": [], "depth": 2}], "depth": 1}, {"id": "eb69nj4", "text": "First, they'll need to make sure their use is accepted in the zoning of your property.  If they have to get a CUP then it's up to you whether you want to tie your property up while they figure that out.   \n\n\nThen you'll need to be comfortable with the fact that the use will be extremely hard on the property.  Just go drive by any neighboring tow yards and take a look - that is what your's will look like quickly.   The pain will be felt when they vacate the property and you have to dump a ton of $ to get it market-ready.  Your yard will be shot and will need re-paving.; there could be environmental issues if they have a bunch of junkers sitting there leaking oil, etc.    \n\n\nAll that said, where I am,  tow yards are tough to get done and I do not to waste time on them.  If you can find a place that will accept the use and the zoning accommodates,  you may be able to get a premium for the space.   \n\n ", "replies": [], "depth": 1}, {"id": "eb6hcfz", "text": "Anything automotive will have some type of chemical spill show up in a phase 1 environmental.  Gasoline, oil, coolant, lubricants etc qualify as toxic chemicals. A small spill means  paying someone credentialed three or four figures to dig a big hole and properly dispose the contaminated dirt. A big spill means you have a plume of contamination in the local groundwater and everyone and their brother sues both the landlord and the tenant.  Some states are much stricter about this than others.  A tow yard would have similar risks in this regard as an auto shop.  ", "replies": [], "depth": 1}]