Why Commercial Property Investors Should Check the Power Supply Before Buying an Industrial Unit

The electricity supply can be just as important as the size of the building

When viewing an industrial property, investors naturally look at the obvious features.

How large is the warehouse? What is the eaves height? Is there a yard? How many loading doors are there? What rent does it produce?

But one feature is often overlooked until a tenant actually needs it:

the electrical power supply.

For many modern manufacturers, engineering companies, workshops, food businesses, data-intensive operations and businesses adopting electric vehicles, adequate electrical capacity can be essential.

A warehouse may look perfect on paper but become unsuitable for an occupier if the available power cannot support its operations.

At Citrus Commercial Circle, we believe investors across Bury, North Manchester and the wider North West should increasingly treat electrical capacity as part of the fundamental specification of industrial property.

Why does power matter so much?

Different businesses have dramatically different electricity requirements.

A straightforward storage business may need relatively little power.

A manufacturing operation might require considerably more for:

• Production machinery
• Compressors
• Welding equipment
• Extraction systems
• Refrigeration
• Heating
• Automated equipment

The same building can therefore be ideal for one occupier and completely unsuitable for another.

What is three-phase electricity?

Three-phase power is commonly required by industrial and manufacturing businesses because it can support heavier electrical loads and industrial equipment.

Many commercial and industrial buildings have three-phase supplies.

However, investors should not simply assume that the presence of three-phase electricity means the building has unlimited capacity.

The actual available supply remains important.

Ask about available capacity

When assessing an industrial property, investors should establish what information is available regarding the electrical supply.

Relevant questions may include:

• Is the supply single-phase or three-phase?
• What capacity is currently available?
• Is the supply shared with other units?
• Are there separate meters?
• Has the supply previously been upgraded?
• Is additional capacity likely to be available?

Electrical matters should be assessed by appropriately qualified professionals.

Older industrial buildings can have excellent power supplies

An older warehouse should not automatically be dismissed.

Some traditional manufacturing properties were built for energy-intensive industrial operations and may already benefit from substantial electrical infrastructure.

In certain circumstances, this can become a genuine competitive advantage.

The age of the building does not necessarily determine the quality of the power supply.

Modern warehouses aren’t automatically high-powered either

A relatively new warehouse may have been constructed primarily for storage and distribution.

If the original occupier did not require significant electrical capacity, the installed supply may reflect that.

Investors should therefore verify rather than assume.

Building age and electrical capacity are separate considerations.

Manufacturing occupiers can be particularly power-sensitive

Imagine a manufacturer searching for a 10,000 sq ft industrial unit.

They identify two suitable properties.

Both offer:

• Good motorway access
• Similar rents
• Appropriate loading
• Suitable yards

But only one can support the machinery they need to operate.

The decision may effectively be made immediately.

Power can therefore directly influence occupational demand.

Engineering businesses have similar requirements

North Manchester has a long industrial and engineering history.

Modern engineering businesses may operate:

• CNC machinery
• Welding equipment
• Compressors
• Cutting equipment
• Extraction systems

These businesses can require substantially more electrical capacity than straightforward warehouse occupiers.

Industrial investors should understand whether their buildings can accommodate these types of businesses.

Refrigeration can require substantial energy

Cold storage, food production and certain distribution businesses may require significant electricity for refrigeration.

A building’s physical specification might suit these businesses perfectly.

But without adequate electrical infrastructure, substantial upgrade costs may be necessary.

Understanding power capacity can therefore broaden—or restrict—the potential tenant market.

EV charging is changing commercial requirements

Electric vehicles are becoming increasingly relevant to commercial property.

Businesses operating fleets may eventually need charging for:

• Vans
• Cars
• Delivery vehicles

A commercial estate with sufficient electrical capacity may be better positioned to accommodate these requirements.

Landlords should consider not only today’s consumption but potential future demand.

Employees increasingly expect workplace charging

EV charging isn’t limited to commercial fleets.

Employees may increasingly want to charge vehicles while at work.

For office and industrial estates with significant parking, charging infrastructure could become an increasingly desirable amenity.

This may create another source of electrical demand.

Solar generation can form part of the picture

Large industrial roofs can provide opportunities for solar photovoltaic installations, subject to technical, structural, financial and planning considerations.

Solar generation may potentially:

• Support on-site energy consumption
• Reduce reliance on imported electricity
• Improve sustainability credentials

However, solar should form part of a professionally designed energy strategy rather than being treated as a simple standalone solution.

Battery storage is another emerging consideration

Some commercial property owners are also exploring battery energy storage.

Potential applications may include:

• Storing on-site generation
• Managing peak demand
• Supporting energy resilience

This is a specialist and rapidly developing area involving technical, regulatory, insurance and fire-safety considerations.

Professional advice is essential.

Grid connections can be expensive to upgrade

One of the biggest risks for an investor is assuming that additional electricity can simply be ordered when required.

Increasing capacity may potentially require:

• New cabling
• Substation works
• Network reinforcement
• Metering changes
• Internal electrical upgrades

Depending on the site and requested capacity, works can be expensive and may take time.

Investors should investigate feasibility before relying on an upgrade within their business plan.

Distribution Network Operators matter

Electricity distribution networks are operated regionally by Distribution Network Operators.

For much of North West England, the electricity distribution network is operated by Electricity North West.

Property owners considering new or upgraded connections can obtain information from the relevant network operator.

The existence and cost of additional capacity should always be confirmed for the individual property.

Don’t confuse incoming capacity with internal infrastructure

Even where sufficient power reaches the site, the internal electrical system may not be capable of distributing it effectively.

Older properties may require upgrades to:

• Distribution boards
• Cabling
• Switchgear
• Individual unit supplies

Both the external network connection and internal installation need to be considered.

Multi-let estates create additional complexity

Power management becomes particularly important on multi-let industrial estates.

A site may have one large incoming supply serving several units.

If one occupier requires significantly more electricity, this could affect capacity available elsewhere.

Landlords should understand:

• Total site capacity
• Individual unit allocations
• Metering arrangements
• Current demand

This becomes increasingly important as estates add EV charging and other electrical infrastructure.

Separate metering can improve management

Where possible and appropriate, clearly defined metering arrangements can make multi-let estates easier to operate.

Benefits can include:

• More accurate billing
• Better consumption monitoring
• Fewer tenant disputes
• Easier identification of high usage

Energy arrangements should be reviewed carefully during acquisition due diligence.

Power can influence rent

A highly specified industrial building with substantial electrical capacity may appeal to specialist occupiers unable to use standard warehouse accommodation.

Where supply is limited, this can potentially influence rental demand.

However, investors should always rely on local comparable evidence rather than assuming that higher power automatically produces higher rent.

The value lies in how useful the specification is to the target occupier market.

Power can also improve tenant retention

Relocating machinery-intensive businesses can be expensive.

A manufacturer may have invested heavily in:

• Electrical installation
• Machinery
• Extraction
• Compressed air
• Production lines

Once established in suitable premises, moving can create substantial disruption.

Buildings capable of supporting specialist operations may therefore attract occupiers with strong reasons to remain.

But specialist buildings can create reletting risk

There is another side to the equation.

A property heavily adapted around one specialist occupier may become expensive to return to a standard specification.

Investors should distinguish between:

useful infrastructure that broadens demand

and

specialist infrastructure that only benefits one business.

Flexibility remains important.

Electrical safety remains essential

Commercial landlords and occupiers have responsibilities concerning electrical safety.

Installations should be maintained appropriately and work undertaken by competent professionals.

The Health and Safety Executive provides guidance concerning electricity at work.

Investors should obtain appropriate professional advice regarding individual buildings and occupational arrangements.

Energy consumption affects occupier affordability

Industrial businesses increasingly consider total occupational costs rather than rent alone.

Energy-intensive occupiers may pay close attention to:

• Electricity tariffs
• Building efficiency
• Heating
• Solar potential
• Operational consumption

A property that allows businesses to operate efficiently can have a competitive advantage.

Energy efficiency and power are different issues

A building can have a large electrical supply while still being inefficient.

Equally, an efficient building may have insufficient capacity for industrial machinery.

Investors should therefore assess both:

How much power can the property provide?

and:

How efficiently does the property use energy?

Both influence future competitiveness.

Future automation could increase requirements

Manufacturing and logistics operations are becoming increasingly automated.

Warehouses may use:

• Automated handling systems
• Conveyor equipment
• Robotics
• Smart inventory systems

These technologies can increase reliance on electrical and digital infrastructure.

Industrial buildings capable of supporting evolving technology may have greater long-term flexibility.

Power should form part of acquisition due diligence

When purchasing industrial property, investors may wish to obtain information such as:

• Existing electrical documentation
• Supply details
• Meter information
• Previous consumption
• Electrical inspection records

Specialist electrical advice may be appropriate where power is a significant part of the investment strategy.

Ask what businesses the property could accommodate

Investors should ultimately connect the electrical specification to the occupational market.

Could the property support:

• Storage?
• Manufacturing?
• Engineering?
• Automotive use?
• Food production?
• E-commerce?

The wider the legitimate occupier market, the more resilient the asset may be.

Strong power can create an asset-management opportunity

Some investors acquire properties where electrical infrastructure is inadequate but upgradeable.

If demand exists from higher-powered occupiers, investment in the supply could potentially broaden the tenant market.

The commercial calculation should compare:

Upgrade cost

against:

Potential improvement in rent, occupancy and capital value.

Not every upgrade will be financially justified.

Power should be marketed properly

Where an industrial property genuinely benefits from substantial electrical capacity, this should be communicated clearly during marketing.

Businesses searching for power-intensive premises may prioritise this information.

Commercial particulars often emphasise:

• Square footage
• Eaves height
• Yard space

Power capacity can be equally important to certain occupiers.

Bury and North Manchester have a strong industrial heritage

Bury and the wider North Manchester market contain a diverse range of manufacturing, engineering, automotive, trade and distribution businesses.

This creates demand for industrial premises with very different specifications.

For some occupiers, location and rent dominate the search.

For others, sufficient electrical power is non-negotiable.

Understanding those requirements helps investors position properties for the right market.

Citrus Commercial Circle’s market insight

At Citrus Commercial Circle, we believe investors should ask one more question when viewing industrial property:

What’s the power supply?

It may sound like a technical detail, but it can fundamentally influence which businesses can occupy the building.

As manufacturing technology, automation and electric vehicles continue evolving, electrical infrastructure is likely to become an increasingly important part of commercial property specification.

The strongest industrial assets will be those capable of adapting to changing occupier requirements.

Final thoughts

Electrical capacity is easy to overlook because it isn’t immediately visible during a property viewing.

But for many industrial occupiers, it can be one of the most important features of the entire building.

Investors who understand power capacity, internal infrastructure and future upgrade potential can make better-informed acquisition decisions and identify opportunities to broaden occupational demand.

At Citrus Commercial Circle, we are proud to help landlords and investors across Bury and North Manchester understand the features that make commercial property attractive not just today, but for the businesses of tomorrow.

Based in Bury. Active across North Manchester. Always on your side.

Call us today: 0161 383 1806

Email: info@citruscommercialcircle.co.uk

Visit: citruscommercialcircle.co.uk

Let’s unlock the full potential together.

Citrus Commercial Circle – Where standards meet success.