Five Elements that Make or Break an IOS Property

For IOS occupiers and investors, here are five aspects of an IOS property that differentiate a great property with the rest:

  1. Zoning: IOS properties that are clearly entitled for their highest and best use, along with the widest amount of ancillary uses, are far superior to those with any restrictions. Many city codes are opaque and general, so it can take time, effort, and resources to determine whether sites are entitled for a particular use. A good practice is identifying any areas of concerns with entitlements early in the property evaluation process.
  2. Access: The ability for commercial trucks and trailers to travel to, enter, and exit a property is a fundamental aspect of IOS properties. Points of consideration include:
  • Proximity to the nearest major thoroughfare or freeway
  • Suitability of access roadways for commercial truck traffic
  • Number of points of entry and exit
  • Restrictions on entry and exit turns (i.e. right-in / right-out only or a median with no turn lane)
  1. Configuration: For commercial truck and trailer parking, the shape and dimensions of the parking areas is critical to the circulation and usability of an IOS property. Rectangular to square properties with a minimum width of 400' or more are usually the best shape for maximum utility. Conversely, properties that are long and skinny, flag lots, or irregular in shape will generally have less usable acreage.
  2. Surrounding Environment: An IOS property in a large area surrounded by other IOS and industrial uses is ideal. Residences or schools on the same street or within a quarter mile of a site can be a significant cause for concern. There are many examples of cities changing zoning to make IOS uses nonconforming, sometimes without notice, to placate citizens in nearby residential areas.
  3. Utilities: Most IOS uses require electricity and water. Septic can work for some IOS uses, but if the operation has a truck wash septic can be prohibitively expensive to clean out as the number of trucks being washed grows. Therefore, being connected to sanitary sewer is critical for many larger IOS operations.
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