Commercial Property Terms To Be Familiar With (Part 1)
Do you want to learn more about commercial property terms? If you want to increase your knowledge about commercial property terms used in the industry today, check out this article.
If you currently invest or are considering investing in commercial
real estate, here are a few commercial property terms that you should be
When deciding whether to build a rectangular or a square building,
you have several factors to consider. For one thing, it may be important
to know that the square building† usually has a smaller footprint. For
instance, a 40,000 square foot building constructed as a square, would
be 200 feet x 200 feet. However, that same building as a rectangle could
be 100 feet x 400 feet and still have 40,000 square feet.
Although itís the same square footage, if youíre going to build:
So, you have only 800 lineal feet of wall to build.
ē 400 x 100, you have 400 for both sides or 800 feet, plus 100 on each end, or another 200 feet.
So, you have 1,000 lineal feet of wall.
Although the amount of lineal feet involved is smaller with a square building, lessening the expense of construction, far more rectangular buildings are being built.†† Why? One big factor that shapes this outcome is that itís easier to put the roof on a rectangle building. The maximum truss length from the standpoint of practical economical efficiency is 50 feet. As soon as you have more than that, youíre into incredibly larger engineering requirements to build that truss, because of the additional length in the roof that it has to support.
Column Spacing and Bay Depth
These are important commercial property terms to understand, because if you have a building thatís 400 feet x 100 feet, you must have one column in the middle of this building. That means your trusses have a one-column distance. This becomes important, when your tenant requires more usable interior space. If your tenant is using big trucks, tow motors, and similar equipment in your warehouse and is trying to navigate a column with a 200-foot truss, they would have trouble.
So, more buildings are being built like this, due to required elements such as column spacing and bay depth. Normally your columns are going to be 20 feet apart. So, if youíve got a 100-foot building, itís 50 feet to the column. You have a total of 50 feet of what is called clear span area. You can actually run a tow motor in that area without worrying about any kind of column spacing or impediments. The utility of the space becomes greater, even though it costs more to build.
Also, the cost of trusses is less and makes up for the extra cost in the lineal footage of wall space. Most of your tenant companies in this kind of property are going to be doing a lot of storage. If they want your warehouse facilities for storage, either long-term or short-term, there must be access to that storage.
Stay tuned for upcoming articles with more commercial property terms you'll want to know.
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ABOUT THE AUTHOR
began his real estate career in Honolulu in 1966, selling land and
homes as head of one of Hawaii's largest brokerages, and has now sold
and leased real estate in Idaho, Virginia, Puerto Rico and Florida. For
the last 30+ years Mr. Tharp has been one of the leading commercial
investment real estate brokers in Orlando, Florida and a nationally
known mentor. Gary is widely regarded in commercial real estate, having
developed tools and systems of commercial property evaluation that have
become industry standards used by professionals nationwide.† With
development experience ranging from office buildings to industrial
parks, Gary is Florida Partner for the Lynxs Group, national developer
of air cargo facilities, Fellow of the faculty of the CCIM Institute,
and Board of Advisor with HIS Real Estate Network, a residential and
commercial buying group.