Industrial Tenants - How to Minimize the Risk for Owners and Property Managers

Industrial Tenants - How to Minimize the Risk for Owners and Property Managers
Industrial properties (warehouses, manufacturing facilities) have few specific risks for owners and managers due to the nature of operations of the tenants.
One of the major risks that owners must be aware of is related to the storage of products in the warehouse.
Sometimes real estate professionals and landlords incorrectly assume that if an industrial property has sprinkler coverage, it's automatically protected in case of a fire.
To proper determine if an industrial property is protected in case of a fire some engineering calculations are required.
When you think about fire protection in a warehouse, it’s important to consider how the racking configuration and the products that will be stored will affect the coverage of the system.
The following questions are an important starting point in determining if an industrial property / warehouse will be suitable for a tenant:
1) What types of products will be stored?
Class 1, Class 2, Class 3, Class 4, Group A, B, C Plastics
2) What types of pallets will be used?
Wood pallets, unreinforced plastic, reinforced plastic
3) Storage arrangement?
Racking, Shelf storage, Back-to-Back Shelf, Solid Pile, Palletized, Bin Box
4) For Racking Storage, determine the type of racking: Single Row, Double row, Multiple row
5) For Shel type, determine the type of shelf: Open Rack, Solid shelving, Solid shelf rack, Slatted shelving
6) Determine clear ceiling height of the warehouse
7) Determine storage height
As a property manager, if you already have an industrial tenant, it’s good to through the same exercise and determine if your property is properly protected in case of a fire.

Good luck!
eProp Property Experts
​Moving forward, together

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