For contractors, distributors, fabricators and service companies, the building is part of the business. Owning it can stabilize occupancy costs, build equity and give you control over improvements. Here’s how we help owner-users approach the purchase.
1. Define the operational requirements
- Warehouse size and how much office you really need.
- Clear height for racking.
- Loading: dock-high doors, grade-level doors, ramps.
- Truck access: truck court depth and turning radius for your vehicles.
- Power: amperage and three-phase service for equipment.
- Yard: fenced outdoor storage for vehicles, equipment or materials.
- Cranes or special systems.
2. Choose the right location
Proximity to customers, suppliers and employees often matters more than price. Consider highway access and drive times to job sites.
3. Understand permitted use
Even without zoning in the City of Houston, deed restrictions and city regulations can limit outdoor storage, certain manufacturing processes and hazardous materials. Suburban cities have zoning. Confirm your use before contracting.
4. Inspect the building
- Roof age and condition.
- Slab condition and cracking.
- Electrical service and panels.
- Fire protection and sprinklers.
- Drainage, paving and flood history.
- Environmental history (Phase I ESA).
5. Plan financing
Owner-occupants may qualify for SBA 504 or 7(a) financing with relatively low down payments. See our SBA 504 guide. Conventional commercial loans are also an option.
6. Model the full cost
Purchase price plus improvements, moving costs, property taxes, insurance and maintenance, compared with the cost of leasing.
7. Negotiate the contract
Allow enough feasibility time for inspections, environmental review and financing. Address what happens if issues are discovered.
Frequently asked questions
Can I use an SBA loan to buy a warehouse?
Yes, if your business occupies the required portion of the building.
What clear height do I need?
It depends on your racking and operations. Many small users need less; distributors often need much more.
Does Houston restrict industrial uses?
The City of Houston has no zoning, but deed restrictions and ordinances can restrict uses. Suburban cities have zoning.
How we help
We help owner-users find, evaluate and buy industrial buildings across Houston. Learn about our industrial practice.
Have a deal or question in mind?
Talk it through with Apurva. A 20-minute call is usually enough to know your next step.
