If you’ve been in residential long enough, you’ve heard this sentence: “We just need a small warehouse.” Translation: “I want a place to store my boat, my side-by-side, my dad’s tools, and possibly launch a thriving empire of custom Yeti-cup engraving.”
These buyers aren’t wrong—they’re just using the wrong word. “Warehouse” is a commercial use term, and what they usually mean is a hobby barn, contractor shop, or flex-type space: something that behaves like a big garage but gets treated like a business by zoning, utilities, lenders, and neighbors who would prefer not to hear a table saw (or fitness class bass) at 10:30 p.m.
Before anyone falls in love with a metal building and a dream, here are five questions to ask.
First, what’s the use—really? Storage only, personal workshop, or revenue-producing? The second you add employees, customer traffic, deliveries, or “I’ll just have one guy help me,” you’ve changed the rules. Yes, it can feel awkward to press—do it anyway. Clarity now prevents chaos later.
Secondly, what does the zoning allow? Don’t stop at the listing description. Check permitted uses, accessory structure limits, setbacks, and whether any “business activity” is allowed at all. “Looks rural” is not a zoning category. And “grandfathered” is not a vibe—it’s a legal status. Even if the building was used commercially before, a new owner may not be able to continue that use. Have the buyer confirm directly with zoning.
Third, if zoning works, can trucks and trailers actually function there? These buyers need a turning radius, driveway width, surface strength, and a place to park a trailer without creating a mud pit or blocking sight lines. Also: ingress/egress on a state route can become its own mini soap opera.
Fourth, do we have enough power? Many need 200-amp or 400-amp service, three-phase power, or at least the ability to upgrade. Ask about distance to the transformer, service capacity, and whether the panel is sized for welders, lifts, and compressors—not just a couple of lights and a prayer. Bonus checks: water/sewer or septic capacity, ceiling height, and door width. A 12-foot door solves problems a roll-up creates.
Lastly, what will insurance—and neighbors—say? Some uses trigger higher premiums (or exclusions), and some trigger feelings. Noise, odor, dust, and stormwater can turn a “quiet hobby” into a neighborhood group chat event.
The right property exists, but the right questions must come first. When your buyer says “small warehouse,” smile, nod, and translate. And if this starts to smell more commercial than residential, consider referring it to a commercial agent—preferably one who sends a nice thank-you check.
With a childhood passion for building and a knack for community transformation, Jana Truman brings a unique perspective to commercial real estate. Known for connecting the dots in complex deals and speaking ‘residential’, managing broker for SVN Accel Commercial Real Estate, Jana is the go-to expert who maximizes value and maintains strong relationships, benefiting clients and residential agents alike.
