Industrial

Regarding Industrial Properties

Property used for industrial purposes, such as factories. Industrial property is used for industrial purposes. It sounds simple, but it comes in all shapes, sizes and covers various s of businesses. Then the property is grouped into three sizes, namely small, large and very large.

Small industrial sites include single or double story buildings that are categorized for industrial use. These often have flexible interior spaces, usually a mixture of warehouse and office space and usually used by small business such as workshop, research laboratories and start-up business. Large industrial properties include medium to large warehouses and factories designed to produce or store goods. They include distribution companies such as third-party logistics (3PLs).

Then the last is a very large industrial property. These large industrial spaces are used as logistics and distribution centers that store and then distribute finished goods to shops and/or directly to customers. s of warehouses such as the Warehouse of Amazon storage and Warehouse E-Commerce.

Benefits of Investing in Industrial Property Investing in the real estate industry can be a good business for smart investors. Some of the main benefits include The interesting aspect of investment in industrial property is the higher income and rent (annual return on investment) they offer. Industrial property is usually valued in terms of the available square meters and can offer 8% greater yield compared to houses which are only 4% -5%. Another advantage is that most industrial leases include fixed annual price increases, which are often associated with (CPI). Then usually industrial tenants are willing to sign long-term lease agreements (up to 10 years in some instances) that give investors far greater security than ordinary housing rent.

Most industrial leases are net leases. Net leases are defined as tenants paying insurance costs, utilities, maintenance and repairs to a property. Then in general, good tenants will maintain the building to a high standard, because its appearance reflects on their business. This means that industrial property does not cost a lot of building maintenance because tenants tend to take care of maintenance problems quickly.