There are many forms of real estate that you can invest in. One investing option that is becoming increasingly popular is industrial real estate. Industrial properties offer investors an excellent opportunity to generate income and increase profits within their portfolios. Industrial buildings typically consist of warehouses, manufacturing plants, and storage facilities. Keep reading to learn more about the premium benefits of owning this real estate.
High Rental Yields With Industrial Real Estate
One of the biggest reasons to invest in this real estate is the potential for higher rental yields. This form of real estate provides more passive income than that residential real estate. The average rental yield for industrial properties in the United States is nearly eight percent. (7.5%) This number is higher than residential and office properties, which are closer to the four percent mark.
Longer Leases With Industrial Real Estate
The average lease for industrial real estate is longer than other forms of commercial real estate. The average lease term for industrial properties is between three and ten years. The lease agreement can also last as long as 25 years, significantly higher than other commercial and residential real estate leases. With leases that long, you are provided more stability for your investment.
Low Upkeep Costs
For the most part, industrial buildings require less maintenance than other commercial types. This is because tenants are responsible for all repairs and upgrades. As a result, the owner won’t need to renovate as often because there is less turnover with longer leases.
This Form Of Real Estate Is Easier To Sell
Industrial buildings don’t endure as many repairs as other buildings because they are constantly occupied. With commercial buildings, you can get a quick sale for a reasonable price because people are always looking to start and expand businesses.
The Growth Of E-Commerce
The growth of e-commerce is a significant factor in the high demand for industrial buildings. Many businesses and companies have increased their usage of e-commerce and online shopping. Because of this, there is an increased need for more warehouses to keep up with the requirements of businesses.
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.