Why Industrial Real Estate?

People tend to overlook industrial properties for more common commercial properties such as office or retail space. However, industrial real estate leases tend to be a long-term investment, providing you with a stable income. Ranging from manufacturing facilities, storage and distribution facilities, and flex space, different industrial properties have different functions with benefits that are specific to your business.

If you are interested in investing in commercial real estate, check out 6 questions to ask yourself before investing in real estate, then you can begin to answer the question of “now what type?” If you are thinking of investing in industrial real estate, it is essential to understand the basics.

industrial real estate investments

Manufacturing

These properties are where commercial goods are produced and assembled. Typically, they have less than 20% of office space with plenty of room to personalize the space to fit your needs. Within manufacturing properties, there are heavy manufacturing and light assembly spaces. Heavy manufacturing plants make heavy-duty goods and have tons of space for big equipment and loading trucks. Light assembly areas are simpler and are places for product assembly.

Storage and Distribution

These properties are also about 20% office space and are made to house and move products to consumers. Storage and distribution properties also include distribution warehouses, general-purpose warehouses, and truck terminals. Distribution warehouses are places that ship products and rely heavily on location. General-purpose warehouses are more for storage and do not rely on location as much. Lastly, truck terminals are used primarily for the loading and transportation of goods.

Flex Space

These properties are comprised of about 30% office space and allow for the tenants to customize their space to best fit their business. The three types of flex spaces are R&D, devoted to research and development, data centers, designated to house company data and wifi, and showrooms, comprised of offices, warehouses, and showrooms.

Ready to Invest in Industrial Real Estate?

Industrial investment properties are increasing in popularity and are a smart option for the business owner looking for a long-term investment. You don’t have to go through this process alone, though. If you are thinking that industrial investment would be the right move for you and your business, contact us. We’ll help you find the perfect property.

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