Industrial unit builders and proposal advise

[IATM]

Hi guys.

Local council has some land available as part of a larger industrial estate. I spoke to them a few days ago and I got what I would say is an informal email just providing general information but they did ask

"It would of assistance if you could provide me with details of your specific development requirements which should include the size of the building together with any ancillary requirements"

Now I don't want to make a hash of this; are they looking for a full proposal document outlining why I want it and how I plan to use it. Or shall I just provide these details via a reply on the email. A part of me thinks just send in even a 1 page document outlining a short background of myself, why I intend to use it and why I need it.

This is the first time I have dealt with this council in such matters so don't want to do things the wrong way as it's also a big opportunity for me.

Further to this if there are any industrial unit builders on ph then I would also like your details please as I will need industrial unit built on this land.

Thanks in advance.

[b0rk]

Does the site/plot currently have planning permission for a unit and what size.?

The council want to know how big a unit you need this will be both floor area, internal/external height and the external area.

Your intended usage ideally expressed as a planning category but they'll probably accept plain English. Ancillary requirements are items such as loading docks, truck access, truck parking, fuel stores, external storage area's, tanks and/or tank farms (of any type). Employee and visitor parking requirements.

Beyond this to move it on you'll need to agree a price and tenure for land (subject to planning), then appoint an architect to work up plans for approval, if you've never built before then find a architect that can act in the role of "employers agent". A good architect will recommend the rest of the consultant team you need. After this you have go through submission of a full planning application. Appoint civil and structural engineers. Then appoint a general contractor to build the proposed design. Fee's will need to be agreed at each and every stage and proposed building costed at various point prior to final contractor appointment particularly if you have a limited budget.

[IATM]

Hi Bork,

Thank you for your reply, The good news is the land is actually an industrial park fully owned by the council and already has the planning permission for industrial use etc,

The main thing they want from me is more details of why I want it and what my use it for it. I run a business in the area and rather than renting I would rather buy the land and build my own unit.

In saying this they said once they had my information they would use this and compare with other interested parties and if possible they would have me meet a economic development officer who might even be able to help with funding (but I am not counting on it).

The impression I get is it is very much a case of they want to help support and develop local business and bring growth to the local economy.

[b0rk]

If the park is council owned they'll be able to advise on a list of recommended architects and on preferred or approved contractors to build the unit for you. Whatever you build will need to fit in the master plan for the park in terms of size, shape and look. The council may have pre-designed units you basically just need to find a builder for.

A very crude rule of thumb ignoring location, size and specification would be £1000 per sqm for total build cost of a unit as permanent structure. External works being about 25% over and above the build cost.

[EskimoArapaho]

b0rk said:

A very crude rule of thumb ignoring location, size and specification would be £1000 per sqm for total build cost of a unit as permanent structure. External works being about 25% over and above the build cost.

Really that high? In that case, Glenmore (for instance) must be doing the ones just outside Cambridge at a loss.

[IATM]

EskimoArapaho said:

b0rk said:

A very crude rule of thumb ignoring location, size and specification would be £1000 per sqm for total build cost of a unit as permanent structure. External works being about 25% over and above the build cost.

Really that high? In that case, Glenmore (for instance) must be doing the ones just outside Cambridge at a loss.

Thought that myself - Had to take a big gulp. Thought it was around the 600 per Sq M.

I am going to write up a sort of proposal document, I hope its ok.

[EskimoArapaho]

IATM said:

Thought that myself - Had to take a big gulp. Thought it was around the 600 per Sq M.

I am going to write up a sort of proposal document, I hope its ok.

Mine is a steel frame with block wall, two-floor with washroom and kitchen area and roller shutter door and bought in 2012. Nothing special, but also considerably better than anything else that was (is) on the market locally. It's 100m^2 total and was £100,000+VAT freehold. Same developer is now selling Phase II which are 120m^2 for £130,000+VAT. I'd make a guess that your £600/m^2 is closer.

Can't say what sort of proposal the LA wants, but my guess is to have a preamble that bigs up the employment opportunities, downplays any environmental issues. Do you face a site survey to cover possible contamination/clearing issues, etc?

[b0rk]

The unit build price depends on part in the number your building we've the frame only on few units forming an estate that would have put the final build cost well under £600sqm, from recollection circa £450 psqm.

However last time we did a small standalone the final build cost would have been close to the £1k figure.

[tjassist]

Interesting,

I have had planning permission to build 3 x 120 sqm units with roller shutter, kitchen, 2 stories, 4-5 parking spaces per unit.This is one building split into 3.

I had quotes of around 90-100k for the build and 40 K ground works. Power 5k, Water 5k, No gas in our area, and BT is unknown as they take too long to quote ( 1 year so far!!)

2 x Commercial estates agents have said rent would be £700-750 a month each.

So £160,000 divided by £23000. is an 8 year return which I'm happy with.(When they are rented out).

Just my penny worth.

[IATM]

tjassist said:

Interesting,

I have had planning permission to build 3 x 120 sqm units with roller shutter, kitchen, 2 stories, 4-5 parking spaces per unit.This is one building split into 3.

I had quotes of around 90-100k for the build and 40 K ground works. Power 5k, Water 5k, No gas in our area, and BT is unknown as they take too long to quote ( 1 year so far!!)

2 x Commercial estates agents have said rent would be £700-750 a month each.

So £160,000 divided by £23000. is an 8 year return which I'm happy with.(When they are rented out).

Just my penny worth.

That helps a lot. I think it depends very much on the area too regarding rental yields and of course the cost fo the building.

That ground work seems high to me, is that the norm ir is it a particular reason is 40k.

[timjones]

The area is Between Wolverhampton and Dudley, the cost for the groundworks is 40k due to there being a slope of about 2 ft and this has to be flattened out, drainage etc.

[EskimoArapaho]

The ground work here was a bit expensive as it's low-lying (with quite a few wet areas nearby) and also was a heavy industry site before and there was some investigation/decontamination work done. This developer had 30 units to spread those costs, however.