6 Industrial Facilities to Consider Purchasing

Real estate investors often look for new ways to diversify their portfolios. One overlooked segment of commercial real estate is the industrial market. While these properties can be expensive, with research, you should be able to find one that meets your budget requirements. Let’s take a look at the different industrial investment options.

Distribution Center

You find distribution warehouses near major transportation lines, such as an airport, interstate highway, railroad, or transportation hub. These warehouses are designed to help move products efficiently into the distribution channel. Many large businesses create a series of distribution centers across the country to maintain product freshness or achieve delivery quotas.

Storage Warehouse

Material storage is the primary function of a general-purpose warehouse. They do not need to be located as close to transportation lines. These buildings are modified to meet the needs of the product. Some products require temperature-controlled facilities; others may require specific security needs.

Transportation Terminal

Transportation centers are physical hubs benefitting the entire commercial real estate market. These facilities cater to the trucking industry. In these hubs, products are shifted from one truck to another. Little storage space is required, but ample parking and garage bays are necessary.

Flex Property

Flex properties are designed to meet the specific needs of their industry. There are several types of these buildings.

  • Research and development properties meet a company’s development needs. Automotive manufacturers require large warehouses with ample privacy to secure concept cars.
  • Showroom properties feature products. Over 50% of the area is typically reserved for the sales floor. Car dealerships are the most recognized showroom facility.
  • Data centers contain multiple networks that serve as backup centers for companies. They typically have high security and are temperature-controlled. This allows business owners to store data in offsite facilities to limit the loss of information in the event of a natural disaster.

Light Manufacturing

Some commercial real estate properties are designed for light manufacturing facilities. These buildings are customized for product assembly, storage, and shipment. These facilities are easy to convert for other companies in the event of tenant turnover.

Heavy Manufacturing

Facilities geared toward heavy manufacturing are large and highly customized. These buildings require large vehicle parking areas and extensive utility resources. If a tenant leaves, renovating the building for a new manufacturing company can be expensive.

One of the best parts of investing in industrial real estate is the variety of properties available to you. This allows you to choose the investment opportunities that interest you and meet your needs.