Types of Industrial Real Estate: Here’s All You Need to Know

Types of Industrial Real Estate: Here’s All You Need to Know

Commercial real estate is created and developed only for the sake of conducting business. The industrial property category is utilised for industrial operations such as manufacturing and distribution of commodities.

Industrial real estate comes in a variety of forms and sizes to suit a variety of company needs. Small industrial sites are one- or two-story structures designated for industrial use. They might feature a combination of warehouse and office space in its interior.

Big industrial properties consist of medium to large warehouses and factories that are suited for production and products storage. The ‘big box’ industrial facilities are much bigger, and are primarily utilised as logistics and distribution centres for storing and transporting finished items.

Industrial real estate properties are classed based on the physical characteristics of the structure and how it is used. Please explain the many forms of industrial real estate:

1. Distribution from a warehouse More than half of the total capacity of industrial assets is made up of industrial properties. They’re mostly used for storing and distributing inventory in businesses. Warehouse properties typically have a single-story building and range in size from 50,000 to hundreds of thousands of square feet. They include ceilings as high as 60 feet, as well as a multitude of loading docks, truck entrances, and vast parking places for semi-trailers. Their offices are generally sparsely furnished.

2. The second-largest type of industrial properties is manufacturing industrial properties. These facilities are built to house specialised equipment used in large-scale manufacturing of commodities and materials. As a result, they have infrastructure in place to accommodate their tenants’ heavy power and machinery needs. They have at least 10 feet of clear height and truck loading docks. Three-phase high-capacity electric power, as well as high-capacity ventilation and exhaust systems, are common in manufacturing industrial sites.

3. Flex industrial properties are the third group. Flex properties can be used for a variety of purposes, generally more than one in a single location, such as office space, research and development, showroom retail sales, light manufacturing, and even small-scale warehouse and distribution. Tenants may easily modify the proportion of office to warehouse space to best fit their company needs thanks to its design.

4. As technology advances, the telecommunications sector, as well as demand for sophisticated telecommunications infrastructure, is quickly expanding. These highly specialised industrial buildings are positioned near major communications trunk lines and power supplies capable of supporting substantial computer servers and telecom switching equipment due to high power needs. Telecommunications facilities house a large number of heavy yet compact pieces of equipment, as well as backup generators and specialist HVAC. As a result, reinforced floor slabs are commonly used to withstand a high floor load per square foot.

5. Smaller industrial properties with many tenants are known as multi-tenant industrial properties. They are better suited to small and medium-sized organisations. They can meet the rising demands of small and mid-sized service-oriented firms by including space in the same structure and allowing them to “add-on” space as needed. In terms of demand, these assets are quickly catching up to other industrial property categories.

Before entering this industry, all essential players should have a thorough understanding of the characteristics and typologies of industrial real estate. Once they have settled on the space needs particular to their firm, new and rising enterprises should contact the top industrial real estate developer. A good industrial property is, without a doubt, the greatest place to establish a successful business.