Industrial
Real Growth For Business, Personal or Enterprise
Industrial properties offer a wide range of asset classes which have taken off over the last economic cycle thanks to the demands of online shopping.
In terms of looks, they may not be the “sexiest” but often times industrial can be one of the best real estate assets to invest in thanks to its flexibility of use and lower cost of entry.
Tenants oten stay in one location for 10 to 30 years so the turn over is very low.
These properties are the largest industrial product and are usually around the 50,000-1,000,000+ square foot range.
About 5% to 10% of the overall square footage is dedicated office area with the remainder reserved as warehouse space.
These properties are usually regional distribution for various types of products and require strong accessibility for trucks entering and exiting the highway systems. This lack of retail lends itself to lower parking spaces due to the lack of employees and customer traffic.
Bulk warehouse space is perfect for tenants in the logistics and distribution sector that need to ship goods to businesses or consumers.
You will often find these types of properties in proximity to an airport, railway station, and/or a seaport.
The name speaks for itself, a flex warehouse building is an industrial product that easily accommodates a wide range of uses.
These buildings typically have at least a portion of office space connected to the warehouse and range drastically in size to fit small mom and pop businesses regional distributors and many more.
This product gives the landlord the flexibility of retrofitting it to meet any incoming industrial tenant’s needs.
Due to their flexible nature they’re often are not as easily accessible as bulk warehousing since an immense amount of load-in and load-out isn’t their primary use.
Heavy manufacturing space is often isolated within the most intense industrialized areas of municipalities due to its use of heavy machinery, chemicals, and power necessities.
Think of General Motors and DuPont as tenants for this type of industrial product.
These properties are often heavily customized for the current user and their specific requirements, which can include specialized infrastructure, finishes, and power. In fact, this type of industrial tends to learn towards the retail environment in terms of its customization of space per tenant.
Heavy manufacturing spaces are sometimes build-to-suit properties since the cost to renovate and modify an existing warehouse may be cost-prohibitive.
Light assembly industrial has a fair amount of crossover with flex space.
Unlike heavy manufacturing, light assembly space isn’t typically utilized to manufacture materials, simply to assemble them and ship them out to distribution centers.
Like flex space, light assembly can also be used for storage and office space (call centers, data centers).
If used on the data center side, light assembly warehouses will need to take power redundancy and internal cooling into account, since the servers and massive amounts of cabling will be utilizing a significant amount of energy and throwing off heat.
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