In the commercial real estate arena, there are many property types, one of them being industrial use properties like warehouses, manufacturing facilities, R&D spaces…etc. Industrial properties have come to the forefront over the recent years as reliable sources of regular revenue. In the current economic climate and moving forward, industrial properties make for sound and lucrative investments. Read on to learn more about the benefits of investing in industrial properties.
Industrial Properties Are Extremely Versatile
When most people think about industrial properties, they think of brick and steel buildings. Commercial real estate investors, on the other hand, see a blank canvas. Industrial properties are used by corporations for manufacturing, research and development, and much more. Businesses use industrial buildings to store raw materials, equipment and inventory. Freight-based companies use industrial spaces for storing vehicles, logistics, distributions, shipping, and to keep supply chains moving. Industrial spaces are extremely versatile and can be used by businesses across a wide range of industries.
Turn-Key Investments
Industrial properties are about as turn-key as you can get in commercial real estate. It is not unusual for businesses that are renting industrial spaces to do their own remodeling, provide their own maintenance and security, supply their own insurance and return the property to its original state when the lease comes to an end. Adequate space is currently at a premium and businesses cannot find the properties they need in residential and heavily-trafficked commerce districts, so industrial properties are prized rental spaces.
Rent and Reliability
Industrial buildings behave much like residential rental properties. Tenants sign leases and provide rent on a monthly basis. Industrial buildings can also be divided to house more than one tenant to double or even triple the rent generated by the property. However, there are some key differences. Since businesses lease industrial spaces, the agreements are usually for multiple years. Additionally, the leases are structured as triple N (NNN) meaning the tenant is responsible for maintenance, insurance and taxes.
Looking to the Future
Industrial properties are necessary for businesses to carry out a number of operations safely throughout the current pandemic. As the virus passes and businesses increase production, industrial properties will continue to attract tenants. Industrial properties are sound investments that can provide a reliable stream of revenue for commercial real estate investors. To get the financing you need to purchase or renovate an industrial property, contact the team at The Capital Rams today.
