How can I make a 21,000 sqm industrial building profitable?
[deleted]
[{"id": "if8rk5s", "text": "Do you own the building?", "replies": [{"id": "if8rxp0", "text": "Does it matter?\n\nEDIT:\n\nBut can you think before you put downvote?\nDid you read the question?\nHave you read the other comments?\nWhy don't you give your input (if you want to)?\n\nEasy to instinctively put downvote.\n\nMine is an interesting and even inspirational question. For all you shed and warehouse entrepreneurs.\n\n\nEDIT 2:\n\nThank you my karma is sinking.\nSoon reddit won't even let me comment anymore.\nAnd good thing we are builders.\nYou won, you destroyed me.\n\nGreat realtors , you have never been at a loss , every box, house, shed or warehouse you have bought you have always and immediately put it on full rent, you have never had to bear the cost of an empty space for months. \nYou never have doubts, you do not stop to think about how you can do better.\nAll in silence in your own head. I always win. no?", "replies": [{"id": "if8sqwb", "text": "Sure. You\u2019re in a real estate subreddit. If you own the building, make it profitable by leasing it to someone who knows how to run a business already rather than trying to make up a business to fill space.", "replies": [{"id": "if8ugah", "text": "You are right, finding someone who knows how to make it even more profitable is a very good possibility. Do you have any recommendations?\n\nCurrently it is already leased to a transportation company.\n\nExactly my request is to figure out how I can make the best use of each square meter. I would like some ideas or advice.\n\nI really feel that I can do better.\n\nThank you", "replies": [{"id": "if8w22g", "text": "As an owner, are you trying to maximize your returns by charging a higher rent or by taking over the space once the lease expires and investing your own cash into your farming business and making money through the business?", "replies": [{"id": "if8wo1z", "text": "Not exactly, now things are going well with the transportation company.\n\nI am looking for ideas and inspiration , to do something in the future more profitable and maybe innovative as I wrote above the idea of the vertical farm (a hypothesis, an idea).", "replies": [{"id": "if952q8", "text": "I like that you have an entrepreneurial drive, and it\u2019s worth pursuing I think if you have good cash flow from your industrial property. But you\u2019ll probably get better answers in a more focused subreddit, unless you\u2019re looking to start a business in commercial real estate. Even if you discover an idea that you\u2019d like to pursue, it doesn\u2019t mean you would need to utilize your industrial property. Maybe in the future you will need a place 10x the size or 0.1x the size. If I were in your spot, I would explore as many industries possible and determine which areas have a deep need for innovation. Then pursue that with full intention. It seems all industries are becoming more competitive so focus is really important in anything nowadays.\n\nAlthough asking in a commercial real estate sub is actually intuitive too as most people here have met many profitable business owners through their job. \n\nBest of luck to you", "replies": [{"id": "if9bh3f", "text": "Thank you for your response.\n\nThe cash flow is good and other smaller properties are rented and at full capacity.\n\nWhat you say is correct maybe I'll need a bigger space or maybe smaller and it's all based on the area I want to put in and I'll have to be very focused no doubt about it. \n\nAnd that's where my interest is and what my question revolves around, currently this property is working, but to see such a large facility just for a transportation company, it doesn't make me feel good. I want to make better use of it.\nI had in some of the comments some good ideas. \n\nI will certainly continue to do more research. I would be glad to hear what areas I could probe. \n\nI would like to add that I don't necessarily have to build a business in it, but rent it out to a company that is more profitable and innovative than a classic transportation company.\n\nThank you", "replies": [], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}, {"id": "if9ywyk", "text": "&gt;Do you have any recommendations?\n\nDon't (ever) go in to real estate.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "if8umag", "text": "Yeah, it does.\n\nIt doesn\u2019t matter how profitable it is if you overpay for it. If you already own it, then it doesn\u2019t matter how much you paid.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "if8v03g", "text": "You can rent space to techies for data centres", "replies": [{"id": "if8vff7", "text": "That's a good idea, I hadn't thought of that.\n\nMore ideas like that.\n\nThank you", "replies": [{"id": "if8vlk9", "text": "\ud83d\udc4d\ud83c\udffd good luck !", "replies": [], "depth": 3}], "depth": 2}, {"id": "if8vpz3", "text": "How could I approach a tech company, how could I propose myself?\n\nThank you", "replies": [{"id": "if8wi0e", "text": "Hmm you\u2019re better off asking this to a computer engineer or IT thread. I don\u2019t want to give you bad advice. But there is $ in it.", "replies": [{"id": "if8wt3s", "text": "Right, thank you.", "replies": [], "depth": 4}], "depth": 3}, {"id": "ifd84f9", "text": "2 most important things are power and latency. Is the building near an electrical substation that can supply enough power to the servers? Also, is the building close to fiber lines for actual internet connection? If you're in the heart of Frankfurt Germany you're sitting on a gold mine", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "if8v7f3", "text": "Read James Randle's \"Confessions of a Real Estate Entrepreneur\"", "replies": [], "depth": 1}, {"id": "if8w308", "text": "Sub divide areas for multiple things.. Maybe an area for storage such as cars, boats etc, maybe some small shop spaces for trades people etc. Not a lot of people need that much space and the ones that do can afford to build exactly what they want.. So I think diving it up is the way to go.. Someone did this exact thing with a huge garage door factory in my hometown..", "replies": [], "depth": 1}, {"id": "if8w5kn", "text": "Some of the questions in this sub make me wonder how the hell some people own what they say they own.", "replies": [{"id": "if8xsoh", "text": "He should not be surprised just because one asks a question that in his eyes may be naive.\n\nAnd I never said whether or not I own a shed. \nMaybe it might bother a person to tell personal situations.\n\nI want to listen to what people maybe more creative and intelligent than me think, to see what I can't see.\n\nI also rely on your input.\n\nThank you", "replies": [{"id": "if8y8pm", "text": "You can\u2019t have your cake and eat it too. Don\u2019t ask for help if you\u2019re not willing to provide information to actually provide said free help.\n\nYou say you already have a tenant, is it not profitable? Do they cause any issues? If it\u2019s profitable and doesn\u2019t cause issues don\u2019t get greedy. You literally say you want to \u201cexploit\u201d it further. You\u2019re going to end up exploiting yourself from what I can see.", "replies": [{"id": "if8ys2e", "text": "But it is obvious that I have provided the necessary information, besides all my question is clear and simple.\n\nIf you have good ideas I would be happy to take inspiration from them.\n\nThank you", "replies": [{"id": "if9122r", "text": "\u201cI don\u2019t want to listen to anything except what I want to hear, and I want to be served on a platter\u201d \n\nSomething tells me you didn\u2019t buy said property with money you made. Most people who earn things don\u2019t speak the way you do.", "replies": [{"id": "if92lli", "text": "This, $100% unless it was some kind of windfall", "replies": [], "depth": 6}, {"id": "if933d6", "text": "I listen to you. \n\nWhether you are right or not what does it have to do with my question.\n\nWhether you have inferred that I own this property or not what does it have to do with my question.\n\nWhat does it have to do with my question about how I use my money.\n\nI am speaking politely, and I asked a good question that maybe you in this particular case cannot help me with. Maybe I should pay you to get this information or ideas? \nIs this too big a question for Reddit? \n\nHow would you make a 21000 smq property highly profitable ?\n\nI understand that this is not an easy question to answer.\n\nThank you for your constructive input.", "replies": [{"id": "if93dwq", "text": "Good luck with this attitude in RE", "replies": [{"id": "if9yt81", "text": "Or janitorial.", "replies": [], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "if9yish", "text": "&gt;I want to listen to what people maybe more creative and intelligent than me think, to see what I can't see.\n\nToo easy.\n\nI'll bite my tongue.", "replies": [], "depth": 3}], "depth": 2}, {"id": "if9cyk0", "text": "Yep", "replies": [], "depth": 2}], "depth": 1}, {"id": "if93ms4", "text": "You should do some more market research on how long these indoor vertical farms stay in business. It is a hell of a time competing against free sunlight, soil, and rain that traditional farms use. Now, you are paying for light, water, and growing mediums?? How much volume in  microgreens do you have to sell to pay for the electricity that is replacing the sunlight?? \n\nThe only profitable people in this space are the companies selling the equipment to suckers who don't understand that selling vegetables isn't profitable unless you inherit your land, equipment and market.", "replies": [{"id": "if9btk0", "text": "Thank you for your response.\n\nI copied it and put it in the notes.", "replies": [], "depth": 2}, {"id": "ifa48qx", "text": "This is so true. There are a handful of vf companies that have raised like a billion each and they are apparently so far away from being profitable it is a joke.", "replies": [{"id": "ifadroh", "text": "I only know because I am a farmer and it's already so difficult to compete with the Amish dudes that got everything for free or the huge farms in CA, AZ and mexico.\n\nWhenever we hear about these \"high tech / innovative\" ag it's always an input based business model where you have to buy everything from their marketplace and then it's \"automated\" lol.", "replies": [{"id": "ifd7di0", "text": "Lol are the \"Amish dudes\" really taking much market share? Not trying to be a dick, I'm genuinely interested", "replies": [{"id": "ifdcb1w", "text": "It depends, agriculture is generally split into different categories - vegetables are considered a \"specialty crop\" (lol) by the US. I don't think there are very many (if any) Amish guys competing in the corn / soybean market but for specialty crops like vegetables I wouldn't be surprised, but they don't report any of their income at all.\n\nThe biggest advantage they have is not paying for anything like land, equipment and labor so they can sell their stuff at way cheaper prices and people eat up the whole \"amish grown/made\" thing.  I would love to see their books, because they have like fleets of trucks, vans and just hire drivers to take them to all these places to sell their stuff. It is wild because then they buy property in cash for their kids.", "replies": [{"id": "iffcwy3", "text": "Fascinating", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "if95la4", "text": "Hookers, onlyfans production studios, fentanyl factory.\n\nBut seriously,  lease it as a distribution warehouse", "replies": [{"id": "if9c99p", "text": "You are right, too, in the end with classical operations you do not go wrong.\n\nNaked prostitutes of only fans in a fentanyl distribution center.", "replies": [], "depth": 2}], "depth": 1}, {"id": "if9a1mw", "text": "Cannabis cultivation if the zoning allows.", "replies": [], "depth": 1}, {"id": "if9byc5", "text": "Convert it to self storage", "replies": [{"id": "if9e27m", "text": "This is an idea that I have already researched and put among the papable options\n\nThank you for your idea", "replies": [], "depth": 2}], "depth": 1}, {"id": "if9nqyh", "text": "You could charge a tenant rent in exchange for their right to occupy the building", "replies": [{"id": "ifh7s41", "text": "Wait a second.  Is this a new concept?", "replies": [{"id": "ifncxty", "text": "It\u2019s the newest thing, but like many fads who knows if it will stick", "replies": [{"id": "ifnmplu", "text": "I was at a friend of my fathers when I was a child (1960's).  On his coffee table he had a 1943 copy of Life magazine.  I was leafing through it...they showed a house in a new tract home development with the title *\"All the joys of Ownership with NO DOWN PAYMENT!!!\".*\n\nI was captivated by the title and read further...people were buying homes and *renting* them to people who didn't want to own one!!!\n\nI thought....*\"yeah like* ***that's*** *going to ever catch on\".*\n\nAnd now, you're saying they do this with commercial buildings?\n\n(I feel like I'm back in the early 70's, trying that first marijuana cigarette).", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "if9yd9h", "text": "You find tenants (or a tenant) that want(s) 21,000 sqm of space and lease it to them in a profitable manner.", "replies": [], "depth": 1}, {"id": "if9yq6d", "text": "I just bought a house.\n\nI plan on making boxed lunches for my kids on weekdays.\n\nWhat is the best way for me to park my car in my garage?", "replies": [], "depth": 1}, {"id": "ifaibc7", "text": "Where is it?", "replies": [], "depth": 1}, {"id": "ifbczrh", "text": "I thank those who proposed good ideas, but in 24 hours I will delete this post.\n\nI am sorry that my question caused this rancor and annoyance to many people.\n\nThank you for your contribution", "replies": [], "depth": 1}, {"id": "ifh9bdj", "text": "There are many possible answers to this question, but you also have to provide more than the absolute bare minimum in terms of context and or information about the property. If you are asking for free advice from participants in this sub, you can at least do that. Instead it seems like you\u2019re surprised (dare I say indignant) that you\u2019ve received some backlash here given the way you\u2019ve posed your question. You are framing it as though you are asking \u201cwhat is the meaning of life\u201d and expecting a long thoughtful discussion on the topic", "replies": [], "depth": 1}]