Mistakes when buying industrial real estate and how ZIOS Industrial Park can help mitigate those risks

Inadequate Location:

Choosing the wrong location can have significant consequences for your facility’s success. It may result in increased transportation costs, longer supply chains, limited access to qualified labour, and difficulties in reaching your target market. In Romania, factors such as proximity to major highways, ports, or airports, availability of utilities, and compatibility with local zoning regulations should be carefully considered.

How can we help?

ZIOS Industrial Park is strategically located, being only 6 kilometres away from the A1 highway, which is the main highway in Romania connecting the west of Romania, Arad to the east of the country all the way to Bucharest. This proximity ensures excellent connectivity to major cities and transportation hubs, making logistics and distribution more efficient. The highway works will be finished soon, further enhancing accessibility.

In addition to the highway, ZIOS Industrial Park benefits from the ongoing updates and enlargement of the county road 106B by the county of Sibiu. This initiative aims to ensure smooth access to the highway and optimize transportation routes in the region. The improved road infrastructure facilitates seamless movement of goods, reducing transportation costs and time.

Moreover, ZIOS Industrial Park benefits from a near by situated existing railway freight depot and railway station. This provides an additional transportation option, enabling efficient rail freight and expanding logistical capabilities for businesses located within the park.

ZIOS Industrial Park’s advantageous location extends beyond transportation benefits. It is located just 15 minutes away from Sibiu city centre, where a well-educated and skilled workforce can be found. The city is renowned for its quality education institutions, producing a pool of talented professionals in various fields. The proximity to Sibiu ensures easy access to a qualified labour pool, supporting the recruitment and retention of skilled workers for your facility.

Lack of Due Diligence:

Insufficient due diligence can be a costly mistake when purchasing real estate for a production or storage facility. It can result in unexpected issues after the purchase, such as undisclosed liens or encumbrances, unresolved legal disputes, or non-compliance with local regulations. Conducting thorough due diligence is crucial to verify property ownership, assess any potential legal or environmental concerns, review permits and licenses, and ensure compliance with applicable regulations. In Romania, this includes verifying the property’s legal status, investigating any outstanding liabilities or disputes, and ensuring compliance with local building and environmental regulations.

How can we help?

ZIOS Industrial Park has established strong support and collaboration with local authorities, including the major house and the county council. This partnership allows company decision-makers to receive first-hand information from these authorities. This direct communication channel enables them to obtain accurate and up-to-date insights into the feasibility and viability of their business endeavour.

Furthermore, ZIOS Industrial Park has a track record of hosting multinational companies and assisting them in establishing their presence within the park. Their experience with these companies gives them valuable insights into the due diligence process. ZIOS Industrial Park can confidently provide evidence and all necessary information to facilitate a thorough due diligence process. This includes verifying property ownership, assisting in assessing any potential legal or environmental concerns, and ensuring compliance with local building and environmental regulations.

Ignoring Infrastructure:

Neglecting to evaluate the condition of utilities and access roads can lead to operational disruptions and increased costs. Inadequate or unreliable access to utilities, such as water, electricity, or sewage systems, can impact production processes and affect the overall functionality of your facility. Similarly, poor access structure can result in delays, increased transportation costs, and difficulties in receiving and distributing goods.

How can we help?

ZIOS Industrial Park prioritizes the evaluation of utilities and access roads to ensure smooth operations and minimize costs for businesses. Key measures taken include:

To address wastewater management effectively, ZIOS Industrial Park has built its own sewage water plant. This facility guarantees reliable and compliant management of wastewater, reducing the risk of operational disruptions and environmental concerns.

Ensuring convenient and reliable access, the park offers multiple access roads. With three independent entrances connecting to the county road, businesses benefit from efficient transportation links, minimizing delays and streamlining logistics.

Recognizing the importance of a well-maintained internal road network, ZIOS Industrial Park is actively expanding its infrastructure. The construction of additional roads within the park enhances connectivity and facilitates the seamless movement of goods, reducing the potential for transportation bottlenecks.

Proper management of rainwater runoff is ensured through a well-designed and functional rainwater canalisation network. This system efficiently collects and directs rainwater, preventing waterlogging and maintaining optimal drainage throughout the park.

The park has installed 7 MW of electricity capacity, with the capability to upgrade to an additional 7 MW. This commitment to a stable and sufficient power supply reduces the risk of power shortages or disruptions that could adversely impact production processes.

ZIOS Industrial Park has established a reliable drinking water network that can cater to the entire park. This ensures uninterrupted operations and meets the essential needs of businesses and their employees.

Additionally, gas availability within the park serves as a readily accessible energy source for various industrial processes.

It is important to note that all utilities and infrastructure provided by ZIOS Industrial Park are already in use, allowing businesses immediate access to these essential services. By comprehensively evaluating and addressing utilities and access roads, ZIOS Industrial Park offers businesses a reliable and well-equipped infrastructure. This enables smooth operations, minimizes disruptions, and optimizes costs within the park’s supportive ecosystem.

Overlooking Future Expansion Potential:

Neglecting to consider future expansion possibilities can limit the growth potential of your facility and require costly relocations or renovations down the line. It is essential to assess the availability of additional land or space within the property for future expansion, as well as the feasibility of adding extra floors or structures. Anticipating future growth and planning for scalability from the outset can save significant time and resources in the long run.

How can we help?

ZIOS Industrial Park has been designed with a layout that facilitates seamless expansion. The park offers a variety of available land plots, ensuring that businesses have the opportunity to expand their facilities on-site without the need for costly relocations. This availability of land provides businesses with the flexibility to accommodate their future growth plans within the same location.

Additionally, ZIOS Industrial Park understands the importance of adaptability and scalability. The park’s urban development regulation supports the strategic approach to long-term growth. This allows businesses to explore options for adding extra floors or structures to their existing facilities. This ensures that businesses have the necessary space to expand and meet their evolving operational requirements.

Furthermore, ZIOS Industrial Park provides comprehensive support throughout the expansion process. Their experienced team can offer guidance and assistance in navigating the necessary permits, approvals, and regulatory requirements for facility expansion. This support streamlines the expansion process, saving businesses time and effort.

Ignoring Legal and Regulatory Considerations:

Failure to comply with local laws, regulations, and labour laws can have severe legal and financial consequences. Inadequate knowledge of zoning regulations, environmental standards, labour laws, and safety regulations can result in fines, penalties, and even closure of your facility. It is essential to understand the legal and regulatory requirements specific to Romania, such as obtaining the necessary permits and licenses, complying with environmental regulations, and adhering to labour laws.

How can we help?

ZIOS Industrial Park serves as a reliable partner for businesses looking to establish their production or storage facilities, offering valuable assistance in navigating the legal and regulatory landscape. With extensive experience in the industry, ZIOS Industrial Park possesses a deep understanding of the local laws and regulations, specific to Romania. They have successfully guided numerous companies through the legal and regulatory requirements, ensuring compliance and minimizing legal risks.

ZIOS Industrial Park’s strong network of professionals, including lawyers, notaries, and consultants, further enhances their ability to support businesses. These experts specialize in various aspects of real estate, zoning regulations and environmental standards. By leveraging this network, businesses gain access to expert advice and guidance from reputable professionals well-versed in the local regulatory landscape.

Navigating the complexities of obtaining permits and licenses can be challenging, but ZIOS Industrial Park supports businesses throughout the process. This comprehensive approach reduces the risk of fines, penalties, or facility closure due to non-compliance.

Lack of Financial Planning:

Insufficient financial planning can lead to unexpected costs, inadequate funding, and difficulties in sustaining operations and achieving profitability. It is crucial to develop a comprehensive financial plan that considers the purchase price of the property, renovation or construction costs, ongoing maintenance expenses, taxes, insurance, and operational costs. Conducting a thorough cost analysis, working with financial experts, and leveraging the resources and financial models provided by an industrial park management company can help ensure sound financial planning and long-term sustainability.

How can we help?

ZIOS Industrial Park understands the significance of financial planning and offers flexibility in payment terms to accommodate businesses acquiring land from the park. This approach ensures that businesses can effectively manage their financial resources. ZIOS Industrial Park works closely with clients to find the most suitable payment structures that align with their unique circumstances.

By offering different payment terms, ZIOS Industrial Park demonstrates its commitment to supporting businesses in their acquisition of land. This flexibility allows businesses to allocate their financial resources strategically, enabling them to optimize their cash flow and manage their budgets effectively.