Understanding Power in Industrial Real Estate: A Quick Guide for Tenants and Owners
In the world of industrial real estate, one topic comes up almost daily: electrical power. Whether you're a prospective tenant searching for the right warehouse space or a building owner looking to increase long-term property value, understanding power infrastructure is essential.
I often hear questions like:
“Is this three-phase?”
“How many amps does this panel support?”
“Will this building handle my equipment?”
If you've heard terms like amps, volts and three-phase power tossed around but aren't quite sure what they mean in practice, this post is for you.
Amperage, Voltage and Watts: What’s the Difference?
Before you dive into power specs, it's helpful to understand the three core components of electricity:
Amperage (amps): This is the amount of electrical current flowing through a wire. Think of it like the amount of water flowing through a hose on a pressure washer.
Voltage (volts): This is the pressure that pushes those amps through the circuit—like the pump powering your pressure washer.
Watts: The actual electricity used, calculated by multiplying amps and volts (AMPS x VOLTS = WATTS). In our analogy, this is the intensity of the water hitting a surface.
These three measurements help determine whether a space can handle the electrical load your business requires.
What’s the Difference Between a Main Switch Board and a Distribution Panel?
Understanding the electrical layout of a building is critical, especially when you're considering an industrial space for lease or purchase.
Main Switch Board (MSB): This is the primary panel where the utility company delivers power into the building. It houses the main circuit breakers and is your best source for a true reading of incoming amps and volts.
Distribution Panel: Any panel located downstream from the MSB. In a multi-tenant industrial property, these distribute power to individual spaces within the building.
Important Note: It's common for the total capacity of distribution panels to exceed that of the main switch board. Electrical designers assume not every panel will run at 100% at once. For example, five 200A distribution panels could be fed from an 800A MSB. If you're combining demised spaces, be cautious not to simply add up panel capacities—you could overestimate the available power.
Single-Phase vs. Three-Phase Power: Why It Matters
One of the most frequent power-related questions we get:
“Does this building have three-phase?”
If you’re running industrial machinery, the answer matters—a lot.
Single-Phase Power: This is the type of power found in residential and light commercial buildings. It has one current and voltage output per cycle. When that current wave hits zero, so does the voltage. Picture a single paddler in a canoe—when the paddle is out of the water, there's no forward motion.
Three-Phase Power: This is the gold standard for industrial use. It has three currents overlapping in a way that delivers consistent, uninterrupted power. Imagine three synchronized paddlers in a canoe—there's always someone pushing forward.
Three-phase systems allow for smaller, cheaper wiring and safer, more efficient operations, making them ideal for warehouses, manufacturing and large-scale logistics.
Power Isn’t Everything—But It’s a Great Place to Start
Evaluating power needs is just one part of your industrial space search. Whether you're an expanding business, a manufacturer entering the Reno market, or an investor upgrading your building, having a knowledgeable partner makes the process easier and more efficient.
Let Beki Dobson, SIOR at Miller Industrial Properties guide your next move. I know the market, the buildings and the infrastructure that makes them work for you.
Reach out today to discuss your electrical needs—or any part of your industrial site search.
