Types of Industrial Real Estate: Everything You Need to Know

Types of Industrial Real Estate: Everything You Need to Know

Industrial real estate can be a great investment opportunity, but it can also be confusing to know what type of industrial property to invest in. This blog post will walk you through the different types of industrial properties and what you need to know about each one. We'll also go over the pros and cons of investing in industrial real estate so you can make the best decision for your business. So, what are the different types of industrial real estate? Keep reading to find out!

1. What is industrial real estate?

Industrial real estate encompasses various properties, from warehouses and manufacturing plants to office buildings and retail centers. Typically industrial real estate is any property used for business purposes. This includes properties that are leased out to tenants as well as those that are owner-occupied. Industrial real estate is essential to the economy, allowing businesses to operate and generate income. In addition, industrial real estate can also be a significant source of tax revenue for municipalities. As such, industrial real estate plays a vital role in supporting the economic health of communities.

2. How can you determine if industrial real estate suits your business or project needs?

Industrial real estate refers to properties used for manufacturing, assembly, distribution, and storing goods. These properties can be either owner-occupied or leased and are typically larger than other types of commercial real estate. There are the common types of industrial real estate: 

1. Warehouses are perhaps the most ubiquitous type of industrial property. They are typically large, open spaces used for storage or manufacturing. Warehouses are often located near ports or other transportation hubs, which makes them convenient for distribution. In recent years, the rise of online shopping has led to an increase in demand for warehouses, as businesses need space to store inventory. As a result, warehouses have become essential to the logistics industry. In addition to their utility, warehouses can also be admired for their architectural beauty. With their soaring ceilings and vast open spaces, warehouses are a reminder of the power of human industry.

2. Distribution centers are an essential part of the supply chain for many businesses. They are similar to warehouses in that they are used to store inventory, but they are designed specifically to distribute goods efficiently. Distribution centers often have large loading docks and clear heights to accommodate stacked containers. This allows businesses to load and unload shipments from their customers quickly. In addition, distribution centers usually have a large parking area for trucks and other vehicles. This helps to ensure shipments will be delivered promptly and efficiently. Distribution centers play a vital role in the logistics of many businesses and are an essential part of the supply chain.

3. Manufacturing facilities are dedicated spaces for the production of goods. These properties often have specialized features like cranes and high ceilings. Manufacturing facilities also typically have large loading docks to accommodate the movement of materials in and out of the facility. Manufacturing facilities can be used to produce a wide variety of goods, from food and beverages to electronics and automobiles. The type of products made there typically dictates the size and layout of a manufacturing facility. When choosing a manufacturing facility, it is crucial to consider the equipment required for production and the space needed to store finished products. Manufacturing facilities can be found in urban and rural areas, although most are located in industrial parks or zones.

4. Companies use research and development facilities to test new products and processes. These properties often have lab space and other specialized features. Research and development facilities help companies to assess the feasibility of new products and strategies and to determine the best way to design, manufacture, and distribute them. In addition, research and development facilities are used to test products for safety and efficacy before they are released to the market. As a result, these facilities play an essential role in ensuring that new products meet the highest quality and safety standards.

5. Factory buildings are a type of industrial building that is used for manufacturing. Factory buildings are usually smaller than warehouses, but they often have more finished interiors, making them a good choice for businesses that require office space or showrooms in addition to manufacturing space. Factory buildings can also be less expensive than warehouses, making them a more affordable option for small businesses. Factory buildings typically have loading docks to accommodate trucks and other vehicles and may also have cranes and other heavy equipment. Factory buildings are often located in industrial parks or factories to provide easy access to transportation and supplier networks.

6. Industrial parks are large tracts of land that often include multiple warehouses or factory buildings. They are usually located in rural areas or on the outskirts of cities and have good access to transportation routes. Industrial parks can be challenging to develop, and they may not have the same amenities as other types of industrial real estate. For example, an industrial park may not have a loading dock, making it difficult to receive deliveries. In addition, industrial parks may be located in areas with few other businesses, making it difficult to find workers or customers. However, industrial parks can offer significant advantages for companies, such as lower rents and fewer restrictions on use. As a result, Industrial parks are an essential part of the industrial real estate market.

There are many other types of industrial real estate, but these are some of the most common. When choosing an industrial property, it is important to consider the specific needs of your business.

Industrial real estate can be an excellent investment for commercial property investors. Industrial properties can offer a higher return on investment than other commercial property types and can be less expensive to operate and maintain. However, it is essential to research before investing in industrial real estate, as the wrong property can be a costly mistake. This property type is typically defined as any land or buildings used for commercial manufacturing, assembly, or distribution purposes. 

Many people think of commercial or office space regarding business or project needs. However, industrial areas can offer various benefits that make them a better choice in some cases. Industrial spaces are typically larger than commercial or office spaces, which can be vital if you need to store a lot of inventory or equipment. In addition, industrial spaces often have higher ceilings, giving you more room to work. Another benefit of industrial areas is that it is usually less expensive than other real estate types. This can be a significant advantage if you are on a tight budget. Finally, industrial spaces are typically located in areas zoned for manufacturing and other heavy industry, which means you will have access to the infrastructure you need to support your business.

Industrial real estate can be lucrative, but it's essential to do your homework before buying. By understanding the different industrial properties and their uses, you can make an informed decision about what's right for your business. For more tips on how to get started in the real estate industry, check our website or contact us today. We would be happy to help you begin your journey to success!