CATEGORIES OF INDUSTRIAL

UNDERSTANDING THE DIFFERENT CATEGORIES OF INDUSTRIAL REAL ESTATE

When investing in industrial real estate, you will encounter different types of property and the structures associated with them. Knowing the fundamentals of each can help you determine the tenant options you have when you purchase them. Also, note that these properties can also accommodate other industrial uses. Read the CATEGORIES OF INDUSTRIAL REAL ESTATE

Industrial land

As the name suggests, industrial land is just that. A zoned land area meant to accommodate industrial activities but has no permanent structure yet. An industrial land doesn’t necessarily have to have buildings for industrial activities to operate. It can be used for other industrial activities like storing gravel and mulch, parking equipment, and so forth. With an industrial land, there are many paths you can take to get the most out of it.

Firstly, investing in industrial land allows you to build on the land from the ground up. Secondly, you also have the option of advertising a build-to-suit opportunity whereby you, as the landowner, cater for the upfront building costs of an industrial structure that meets the tenants’ requirements and lease it to them after completion.

Industrial build-to-suit- CATEGORIES OF INDUSTRIAL

You have plentiful options when it comes to investing in industrial property Monterrey. For instance, you might have encountered a contract for a piece of industrial land that states build to suit. In this case, the industrial landowner pays for the costs of constructing an industrial structure that suits the tenant’s specifications and then leases it to the tenant upon completion.

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It is a great investment because you don’t have to worry about vacancy rates as you already have a tenant in place. But you can also build a speculative building to meet a lacking demand in the market.

Bulk warehouse

These are the largest industrial buildings and are mainly regional distribution zones for various industrial products. Therefore they require strong accessibility fr trucks coming and leaving the industrial area. Since they have a large footprint, most of them are located outside metropolitan areas. Most of them are specifically meant to store bulk goods and serve as the primary supply chain for distributors and retailers.

Heavy manufacturing

As the name suggests, heavy manufacturing space involves heavy machines and power necessities; therefore, it is mostly isolated. Heavy manufacturing industrial properties are mostly owned by large national companies and local owner users as they are often tailored to the current user’s needs. It can be inconvenient to relocate heavy manufacturing; therefore, tenants occupy these properties for many years.

Cold storage

This is the other name refrigerated warehousing for storing perishable products. These industrial properties serve as a distribution channel for chain groceries and pharmaceutical products. Cold storage warehousing has increased because of the rising demand for fresh foods and grocery deliveries in the modern age.

Flex warehousing

Also known as a flexible warehouse, it can accommodate various uses. Flex warehouses mostly have a portion of office space and are most common in rural areas.

conclusion

Other industrial properties include light assembly industrial, industrial showrooms, data centers, and research and development sites. Always carry out your due diligence when investing in industrial property.

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