While there are some similarities, industrial real estate is notably different from commercial real estate in some ways. For the most part, the latter is used for business purposes, while the former is used for the production, distribution, and processing of goods.
If you are interested in investing in industrial buildings, the following are the most common types you will come across.
- Warehouses/Distribution Centers. These industrial buildings are mainly used for storage. Businesses use warehouses when they either receive goods from suppliers or send them out to customers. Warehouses come in various sizes and shapes, from single-story buildings to multi-story facilities with hundreds of thousands of square feet of space.
- Manufacturing Facilities. These facilities house all the operations needed to produce goods. They often have several different industrial-grade machines, workstations, and other equipment necessary to create finished products.
These buildings may also include areas dedicated to packaging and shipping the goods once they’re completed.
- Flex Properties. This type of industrial real estate is actually a hybrid of an industrial space and an office. They are usually somewhat smaller buildings that have private offices and conference rooms.
These industrial buildings are often used by companies that need to be close to their operations but also need the ability to conduct business during their working hours.
- Industrial Parks. Basically, these are areas usually composed of various industrial real estate properties that have been developed by a single company or a group of companies. They often include industrial and office spaces, as well as recreational and parking facilities. They may also feature retail stores and restaurants to provide convenience for their workers.
- Showroom Buildings. Companies use these industrial buildings to showcase their products. These properties are usually located in high-traffic areas and are typically designed to be both attractive and functional. They may feature a large lobby area, sales floors, and also offices in the back for negotiations, document processing, and other purposes. A couple of great examples of these buildings are car dealerships and furniture display centers.
- Research and Development Centers. These buildings are used for inventing and testing new products. They often include large, open areas where researchers can work on their projects, as well as labs and manufacturing equipment if necessary.
- Data Centers. Companies that process tons of data on a regular basis need these industrial buildings to house their servers, computers, and other IT equipment. These properties are specifically designed with industrial-grade cooling systems and backup generators to ensure extreme temperatures or power outages do not damage the equipment.
- Truck Terminals. Lastly, we have the truck terminals. These facilities are used as parking spaces and rest areas for drivers. They may also include loading docks, fueling stations, and repair shops to maintain the fleet of trucks.
Start Investing in Industrial Real Estate Now!
Investing in industrial real estate can be a great way to diversify your portfolio and take advantage of long-term growth potential. Now that you know more about the different types of industrial buildings, you can make an informed decision about what type of property is right for your investment goals.
So, what are you waiting for? Contact Levi Smith at PA Commercial today to get started! Levi has years of experience helping investors find commercial and industrial properties that fit their budgets and needs. Speak with him now and start growing your wealth!