Are you ready to invest in
commercial real estate? Or perhaps you’re ready to expand your commercial real estate portfolio. Investing in real estate – commercial or residential - offers many benefits, but it isn’t for everyone. Therefore, you must do your research.
When most people think of commercial real estate, they think about buildings they regularly utilize – offices and retail spaces. Another type of commercial real estate is industrial – properties, where goods are made, stored, and shipped.
“The U.S. industrial market continued to post strong fundamentals in 2022 and closed the year with positive gains in occupancy, rental rates, and construction activity. Core markets across the country have thrived during this time, building and absorbing millions of square feet of industrial real estate,” according to
Colliers. “2023 looks to be another healthy year, despite concerns of moderated industrial activity. While a cooling-off period is expected, significant opportunities remain for both investors and occupiers of industrial space.”
Typically, industrial properties must be customized for different types of businesses and products.
Types of Industrial Real Estate
- Manufacturing:
Manufacturing properties are where goods are… well… manufactured. There are heavy manufacturing and light assembly. Generally, these properties include an area for equipment used to manufacture and assemble products, a small office space, and loading docks. Heavy manufacturing usually requires huge buildings to house big, heavy manufacturing equipment. Typically, they also need a suitable power source and ceilings at least ten feet high. Facilities for light assembly typically require less space because products are usually assembled from smaller parts.
- Warehouses:
Once products are manufactured, they need to be moved to end users, which is where warehouses come in. There are three common types of warehouses. Distribution warehouses are where products are distributed. The size of these facilities can vary but are generally 50,000 square feet or bigger, and they typically need to be located near a major highway or airport to ensure quick delivery to end users. General-purpose warehouses are where goods are stored; therefore, location is less crucial. Truck terminals require much less space because they are used to move goods from one truck to another, not as storage.
- Research and Development:
Research and development facilities are where companies develop new products or improve upon existing products. The ideal size and location for these facilities can vary greatly.
- Data Centers:
Data centers are where companies keep equipment, such as computer servers and telecom switching equipment, to hold their data, keep their internet running, and make cloud storage possible. They average about 100,000 square feet but can be much bigger.
- Showrooms:
Businesses use showrooms to display and sell their products. Think car dealerships. These buildings are typically a combination of offices, warehousing, and showrooms. Again, the size can vary depending on the product they are displaying.
This is not a comprehensive list, but an excellent place to start if you’re considering investing in industrial real estate.
Are You Ready to Invest in Commercial Real Estate?
If you’re ready to purchase commercial real estate – whether it’s an office building, retail space, or industrial property, you can’t do any better than Peter Heim. Put his experience to work for you!
Contact Pete and his team today at
610-745-3378 or
610-898-1441 or
connect with him online.
