Elevate Your Investment: Transform Your Warehouse with a Mezzanine Floor

Introduction

The commercial real estate landscape can be a treasure trove of opportunity, especially when exploring the potential of property improvements. One such improvement, the mezzanine floor installation, could be a game-changer for industrial property owners. This type of installation is an intermediate floor within the existing height of the warehouse, effectively doubling the floor space without the high costs of expansion or new construction.

Key Reasons to Consider Upgrading 

Installing a mezzanine floor can significantly increase your storage capacity, accommodate more working areas, or even attract higher-paying tenants. It provides more room to maneuver, expands your operational capabilities, and can result in a swift payback period if it leads to greater efficiency or profitability. The return on investment can be compelling given the installation cost, ranging between $75 to $150 per square foot.

Types of Mezzanines

Mezzanines come in several types, each designed to meet diverse warehouse requirements. Here are a few varieties of the flooring:

• Free-standing mezzanine – This style does not depend upon existing structural components. Instead, it relies on structural column installation for support.
• Catwalk mezzanine – Catwalk mezzanine involves creating an elevated platform of functional traffic lanes for workers.
• Shelving or rack-supported mezzanines – This mezzanine utilizes existing shelving or racks as its foundation. It does not require the installation of structural supports. 

Expanding the workspace is the most common reason for adding a mezzanine floor, as installation can add essential square footage for facilities with limited floor space. By leveraging vertical space, mezzanine work platforms can help workers tackle tasks without clogging up lower walkways or other workspaces.

Other uses include added shelving, storage space, conveyor support spaces, and observation decks. 

Incentives

California offers several incentives for commercial real estate investors undertaking property improvements like mezzanine floor installations. These include Job Credits, Real Estate Tax Abatements, Tax Increment Financing, and Capital Improvement Projects (CIPs). Furthermore, Energy Efficiency Incentives may be available if your mezzanine installation includes environmentally-friendly features.

A California Company that Raised the Bar with Mezzanine

Dole’s Fresno warehouse is a 1.2 million square foot facility built in 2019. The mezzanine floor adds 50,000 square feet of storage space. Abtech, Inc., a commercial construction company specializing in mezzanine projects, installed the mezzanine floor. Steel beams and columns support the Fresno facility’s floor, freeing space for more active products on the main floor.

The cost of installing a mezzanine floor varies depending on the size and complexity of the project. However, the average price is between $75 and $150 per square foot.

There are several benefits to installing a mezzanine floor in a warehouse. The most obvious benefit is that it increases the warehouse’s storage capacity. The increased storage area can be a valuable asset for businesses that must store much inventory.

Another benefit of installing a mezzanine floor is that it can improve the efficiency of the warehouse. Workers can access inventory more easily and quickly by creating additional storage levels, increasing productivity.

Finally, a mezzanine floor can also improve the safety of a warehouse. By creating additional walkways and platforms, workers have more space to move around and less risk of accidents.

Consulting with a qualified commercial construction company is essential if you are considering installing a mezzanine floor in your warehouse. They will be able to assess your needs and recommend the best solution for your business.

Payback Period

The payback period is the time it takes for your investment to pay for itself. The formula for a real estate improvement project like a mezzanine floor installation would be Investment Payback Period = (Initial Invested Capital / Annual Cash Flow). Given the potential benefits, the payback period for such a project could be remarkably short.

Conclusion

With the right approach, installing a mezzanine floor in your industrial property could provide immediate benefits and pave the way for long-term profitability. Using a loan to fund these improvements is made easier with the assistance of experienced professionals like those at Evoque Lending. Reach out to us today to explore your options.