Pricing a warehouse for sale in Austin, Texas

Market conditions directly affect pricing a warehouse for sale

So what is essential in determining the value of a warehouse that you want to sell? Let’s just start with a discussion that most folks are familiar with such as a residential home.  When a listing agent sells a home for a homeowner, the first key is the supply and demand that is present in the market. Easy equation high demand low supply causes higher sales prices, however other attributes have influence on the property such as:

  • Size of the property
  • Financing opportunities
  • Location and quality of the surrounding area
  • Access to highways and transportation

Taking the residential model into a warehouse pricing scenario Pricing a warehouse for sale

Can we use the same type of requirements above and tag that into commercial warehouses for sale? Absolutely , let’s look at each quickly.  Do these elements affect the warehouse pricing? Size, Financing , Location, Access to transportation? Absolutely!  Also for the industrial user or investor , there are other attributes that play into the pricing such as:


  • Some buyers want the quite tucked away spot while some buyers want high visibility with lots of traffic
  • Deferred maintenance on the property in question, its condition
  •  Efficiency of the building
  • Workforce that is present
  • Rail access

What about the investor that is not going to use the warehouse to run their specific business?

  •  Better location of the warehouse – this can provide an opportunity to drive lease rates higher
  •  More density population wise
  •  Upside potential – the future value of the warehouse investment

Different needs for different types of Buyers

Some commercial warehouse buyers can be more or less flexible, it all depends on the attitude of the buyer.  Basing the warehouse’s value on construction costs the investor or buyer can evaluate the property based on what it would cost to build a similar structure.  How much will cost to build this warehouse on its present location or build one on a different location?  How does the pricing of the warehouse per square foot at resale compare with the cost of new construction?