by 
1st July 2024
Why You Should Buy Industrial Land?
Top 5 Reasons to Invest in Industrial Land: Flexibility, Value, and Growth Potential
When it comes to finding the best property to suit your business’s unique needs, starting with the right plot of industrial land and building on a strong foundation is often the most beneficial approach. Searching through classifieds for the perfect property can be a frustrating experience, often resulting in compromises that could cost millions.
However, purchasing industrial land and constructing a custom facility can provide the flexibility and value you need to ensure long-term success.
Finding the right property for your business needs in the crowded market is challenging. Many existing properties may not meet your requirements, forcing you to spend additional money on modifications.
These situations are less than ideal when you are making a significant investment. Why settle for something that doesn’t fit when you can build to suit?
Why Industrial Land is a Smart Investment
Finding the right property for your business can be a frustrating experience when sifting through classifieds. Often, the existing buildings don’t meet your specifications, and previous owners may have built something that doesn’t fit your needs. This can lead to costly compromises or additional expenses to make necessary changes. Moreover, there simply aren’t many factories on the market to choose from.
A better option is to purchase a plot of industrial land and build according to your exact specifications. This approach provides the flexibility to create a property that perfectly matches your business needs.
Scarcity of Industrial Land
Industrial land is scarcer than you might think. In Malaysia, the volume of sales for factories is only about 2.1% per quarter, and for industrial land, it’s similarly low at 5%. This data shows that there are limited options available, and the frequency of transactions is low. Potential buyers often face a shortage of suitable properties, despite the apparent oversupply of terraced and semi-detached factories on the market today.
Benefits of Building on Industrial Land
When businesses partner with us to find the right plot of land, they gain several advantages. Building on a 2- to 10-acre plot allows for cost savings and efficient land use, guided by plot ratios and setbacks. For example, a one-acre plot with standard setback requirements only allows for about half an acre of build-up, which is insufficient for many businesses. Larger plots, such as 2 acres, offer more buildable space and better cost efficiency.
Real-World Examples
Our clients have benefited significantly from purchasing industrial land. For instance, a large pharmacy brand needed a warehouse in Shah Alam but couldn’t find any suitable options due to the high demand for warehousing post-COVID.
We helped them secure a 4.7-acre plot in Bukit Raja, Klang, allowing them to build a custom warehouse that met all their specifications.
Appreciation and Flexibility
Investing in industrial land is a wise financial decision. Industrial land appreciates in value due to its scarcity and zoning limitations. A bare plot of industrial land offers more flexibility and higher appreciation potential compared to an existing factory, as new owners can build according to their needs without the cost of demolition.
Partner with My Industrial Malaysia
In the current market, many property agencies push specific areas or properties regardless of whether they suit your business needs.
At My Industrial Specialist, we prioritize providing prospective buyers with comprehensive information to make informed decisions. Our one-agent-one-area model ensures valuable insights into key industrial zones.
For example, a public listed client in the supply chain management space sought semi detached factory in Shah Alam. We provided them with detailed information about available options, and they ultimately purchased a detached factory in Bukit Jelutong, which was better suited to their needs.
Conclusion
Industrial land offers numerous benefits, including flexibility, cost efficiency, and higher appreciation potential. By partnering with My Industrial Specialist, you can find the best land deals to accelerate your business growth.
For more industrial property information and to explore the best options available, visit our website, MyIndustrialSpecialist.com.
