Have the thoughts of investing in industrial real estate ever crossed your mind? Well, before you put your money in this venture, read on to find out why you might be on the right track.
What Is Industrial Real Estate?
Industrial real estate is a property purposefully developed to manufacture, produce, and develop products. The property can also be used for logistical purposes. Unlike residential and office real estate, which are small and used by families, industrial real estates are large and used for business purposes. Below are a few reasons to invest in industrial real estate.
When compared to residential property, the industrial property takes less time before occupancy. The demand for industrial property is always high because of its versatility. In fact, with the COVID 19 pandemic, many people want to open e-commerce shops pushing the demand even higher.
Unlike residential and office real estate, which can only be used for their respective purposes, industrial properties are highly diverse, facilitating their stability. Indeed all the goods and products that we use come from the industrial property. For example, these properties are used for manufacturing, production, logistics, and many more. And as you know, when demand is high, the price goes up too.
Industrial real estate investments give higher returns than all other real estate investments. To be precise, the industrial property offers a return of between 6 – 7.5%. The retail estate gives 6% while office space tails the list with a 5% return on investment.
Low Maintenance Costs
If you invest in residential properties, you will have to constantly repair, upgrade, and renovate your property. These sorts of maintenance are costly and take time. On the other hand, industrial properties require little remodeling due to their design and extended occupancy.
Less Market Saturation Risks
There will always be an undersupply of industrial properties since more companies are opening up and require space. Moreover, the location for industrial properties closer to the market, raw material, power, water, and other basic needs will automatically raise their demand.
Greater Tenant Responsibility
As stated earlier, industrial properties are used for setting up businesses. Since businesses have long-term goals and an image to portray, they will repair your property in case of minor damages.
Trust the Professionals at Clagett Enterprises for Your Realty Needs
If you’re looking for an experienced property management company, the perfect realtor for your property, or a professional to assist you during your purchase of any home, you can rely on Clagett Enterprises. Clagett Enterprises is a full-service real estate company with almost 30 years of experience in the Frederick and Western Maryland area. For assistance with commercial sales, leasing, management, and development and consulting, contact us online or give us a call at 301-665-6009. To meet our team and see some of our beautiful homes, follow us on Facebook and Linkedin.