Has anyone flipped an underutilized warehouse?
I have found a 40,000 sqft building on the major road in my city. This building has only ever been known as the "going out of business" furniture warehouse. I am looking to transform this space into a higher and better usage. It is in a great location with a new major ring road being completed directly in front of it over the next 2 years. 

Currently, it is nearly completely open with only one demising wall to create a stock area with a loading dock. 

I have a 1000 ideas of what it could be turned into but I am wondering if I should let the market decide? 

Should I instantly demise the space into multiple smaller storefront and attempt to lease them? 

Spruce up the outside and attempt to lease as a whole unit? 

Maybe throw another floor in it and convert it to office?



I have looked into zoning and such and it is fairly flexible. anyone that has done this or been apart of it I would like to hear from you! 

[{"id": "duk4nl3", "text": "Good luck! Sounds like a good opportunity!", "replies": [], "depth": 1}, {"id": "dukh689", "text": "I worked with a team that converted a storage warehouse into a tech company. \n\nIn terms of renovations, we started with a basic renovation that converted some of the space into basic offices, ADA bathrooms, etc. \n\nAs prospective renters came along, we negotiated how much we\u2019d be willing to contribute to further, more specific renovations. \n\nUltimately, the company that rented it did have a bunch of custom renovations they wanted, some of which even meant knocking out brand new walls etc. We offered a large chunk of money to assist them for certain things. \n\nInternally, our rationale was that we\u2019d sponsor parts of the renovation that contributed to the long term value of the facility (new HVAC, plumbing, etc.). The more...eccentric parts we let them pay for. \n\nI can\u2019t answer all your questions but that\u2019s my input!", "replies": [{"id": "dumikll", "text": "Thanks for your perspective! ", "replies": [], "depth": 2}], "depth": 1}, {"id": "dukknqi", "text": "I own an old 50k sqft warehouse - but has terrible road access, and not in a really high traffic town.  I also own a 160k sqft manufacturing space in a high traffic ID.  \n\nA few questions:\n\n*What is the interior height of the building?\n\n*What is the ACTUAL zoning?  Heavy/light/industrial/commercial could really allow you to expand your options.\n\n*What is the frontage like / parking access for multiple units?\n\n*Does it already have sprinkler systems, if so wet or dry?\n\n*Does the dock need/have a ramp, and is there only one?  Is truck traffic in and out easy?\n\n\n", "replies": [{"id": "duko3zt", "text": "Industrial tenant rep/leasing broker checking in. You hit all the important questions I can think of off the top of my head.", "replies": [], "depth": 2}, {"id": "dumhh6p", "text": "I have included some [pictures](https://imgur.com/a/3RVRF) so you can decide some things for yourself. \n\n\n\n*What is the interior height of the building?\n\nInterior height is 25 feet and it is a precast structure. \n\n\n*What is the ACTUAL zoning? Heavy/light/industrial/commercial could really allow you to expand your options.\n\n\nCommercial artery, so basically commercial but with different easements for future growth I believe among other things. I added it to the picture link. \n\n*What is the frontage like / parking access for multiple units?\n\nHas approx 100 parking stalls plus the ability to park on the road ( as of right now) Frontage is great currently and future growth in this area will be massive once the ring road is completed and the roundabout is added. You can see where they have finished the groundwork for the connecting road but we are waiting for a bridge to be built (5-10 yrs) This intersection also links us to Canada\u2019s fastest growing Municipality! \n\n*Does it already have sprinkler systems, if so wet or dry?\n\n\nYes, it does have a sprinkler system. I think wet. I am looking at the building again on Friday to gather more information. Right now the sales floor has a t-bar ceiling that has limited squares in it in order to accommodate the sprinklers.  \n\n*Does the dock need/have a ramp, and is there only one? Is truck traffic in and out easy?\n\nTruck access is very easy. The unit has 2 loading docks that are recessed into the ground to make it a level loading area. ", "replies": [{"id": "dums487", "text": "That truck court is absolutely atrocious. Think about trying to back in a 53' trailer in there. \n\nIs 25' the clear height (height to the lowest point on the ceiling) or is it to the actual ceiling itself? This matters so people know how much of their product they can stack.\n\n", "replies": [{"id": "dur71ac", "text": "Agreed on truck court - looks like more of a flex deal (think defense, materials testing, etc) than a distribution deal. Issue with this is that you will have less tenant velocity which is bad for your flipping concept. Maybe consider putting it UC for an extended period of time and shopping for a tenant. Thanks!\n\nEdit - check out surroundings, it\u2019s a flex-retail location with warehouse and sales shared in modified metal buildings. ", "replies": [], "depth": 4}], "depth": 3}, {"id": "duncrcw", "text": "C4 Gives you pretty much all your answers.  Looks like you cannot do \n\n*25' is high enough for any realistic commercial use - not withstanding specific high bay warehousing / manufacturing.  (Manufacturing doesn't seem to be permitted - not excluded though)\n\n*Warehousing would be an issue - although 2 docks to service isn't unheard of, distribution would be probably a not starter, other than small scale - which - finding a larger company looking for a local route can be done.   We full service with ~2 guys and 1 truck about 35k sqft.  (Edit: with 4 docks).\n\nBe aware of the recessed pit in winter &amp; high rain times.  Make sure you have a pump / heating system to remove excess water / keep it clear because it will turn into a sheet of ice.  Great for hockey, bad for trucks.\n\n*Sprinkler: may want to look into a wet --&gt; dry conversion.  Depending on your use, having a dry system can save you loads in head.  We upgrade 2 of our systems that covered ~40k sqft for ~$18k, and it saves us over $6k in heating costs a year.  \n\n*It looks like you might have a gem with tons of options.  If you can find an anchor tenant you could easily split that into 2/4 quadrants (depending on dock access needs)   Optimally I would say 2 - given frontage / parking ease on 2 sides.  \n\n*In the US this would be a great \"Dollar General\" or \"Dollar Store\" opportunity, or perhaps a grocer such as an \"Aldi\".  They don't require the parking &amp; docks that other places do, and they are well sourced &amp; stable economies.\n\n*Looking up Red Deer I see some casinos - perhaps an ancillary or service supply company to them, or a repair provider, \n", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "duktvzs", "text": "If you can send a floor plan and / or site plan I\u2019ll tell you what to do with it it.  Don\u2019t spend any money on it yet and definitely let the market tell you what to do with it.  Dumping a lot of money into it only to find out it\u2019s the wrong buildout defeats the purpose of the opportunity you have to make a return on your current investment.  \n\nAdd a small open office with restroom, with basic carpet and paint.  Nothing more than 1,200 sf of office for now.   ", "replies": [{"id": "dumlejh", "text": "Check out the link with the pictures. Its 200x175 so about 35000 sqft - 10,000 warehouse storage with a separated wall and the remainder is being used as open sales floor with a t bar roof ", "replies": [{"id": "dums7jf", "text": "So 10k is actual warehouse usage and the rest is finished out? That will be a deal breaker for a warehousing/distribution client unless you're willing to demolish a significant portion of that down.", "replies": [], "depth": 3}, {"id": "dumuzj1", "text": "So it only has 2 dock doors in that back corner?  If that\u2019s the case it\u2019ll limit your prospects and it\u2019ll limit your ability to lease to multiple tenants.  Also, an interior plan would help in order to see what the layout looks like.  Can you send that?", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dum5ctv", "text": "Cannabis if it's legal where you are at", "replies": [{"id": "dumlg56", "text": "Soon!! but I cant see them agreeing with the zoning for this place", "replies": [], "depth": 2}], "depth": 1}, {"id": "dunervu", "text": "Hey hey.  I may have someone who can buy this from you.  Is the property clear span (no columns)?  Pls contact me via bit.ly/BRLWebsite", "replies": [], "depth": 1}, {"id": "dvk868a", "text": "You said \"I have found...\".  Did you end up purchasing it yet?", "replies": [{"id": "dvlyxlh", "text": "no, not as right now ", "replies": [], "depth": 2}], "depth": 1}, {"id": "dvsnnf7", "text": "What are the odds this is in Austin, Texas?! ", "replies": [{"id": "dvt6ix7", "text": "Zero Lol it's in Texas of the north, Alberta Canada ", "replies": [{"id": "dw490u1", "text": "dannng! that is too bad for me :) lol", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]