Blog

Investing in Industrial Real Estate

Investing in Industrial Real Estate

Industrial real estate investing may be a better deal than you think.

Commercial real estate investing is one of the most stable forms of making a living. However, it takes considerable skills and knowledge of the market to perform wisely. One of the choices an investor must make is what type of property to invest in. Believe it or not, industrial real estate may be a better choice for you than office, retail, or multi-family properties. 

Types of Industrial Real Estate

Industrial real estate comes in a wide variety of forms for different purposes such as manufacturing, warehouse and fulfillment, testing and research, and storage. Countless industries make use of these types of properties. E-commerce is a main one, especially today with the surge in online purchases that will not go away any time soon. Data centers are also in high demand. These properties come in different layouts and sizes, according to their purposes.

Why Industrial Real Estate?

As mentioned above, industrial real estate is currently a very attractive type of CRE because of the high demand for e-commerce and data center facilities. Because of these strong trends, these buildings are in high demand and have a very low vacancy rate today, which is a good sign. Industrial properties are actually more affordable to buy and operate than office, retail, and multi-family real estate, and tenants sign on to longer lease terms than those properties as well. Industrial property investing could be a great way to break into the commercial real estate industry.

Buying Old Construction

One way to get started is to purchase an older industrial property that needs renovating. This method is also known as “value-add.” One can purchase a neglected or run-down property for a lower price, build it back up to market value, and sell it again for a higher price than what you bought it for. You will need to gain a reliable and knowledgeable contractor who can help you see what needs fixing the most and what it might cost.

Buying Market Value

Another way to invest is to buy a property at market value. You would have to ascertain that the property has a healthy number of tenants, so you can be sure to get a healthy return rate. You will also need to perform a building assessment so you are fully aware of any necessary renovations.

Developing Land

Lastly, you can also start from scratch through land development. Building a brand new industrial center for specific purposes in mind could be a smart strategy, given you know the market well. Talk with a Clagett Enterprises professional to see how you can get started!

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.

Tags: , ,

Comments are closed.