Industrial real estate isn’t considered by most investors, yet it represents an incredibly lucrative sector of the overall market. Just like standard commercial real estate, industrial property is always in demand since businesses need space to operate. Some common uses for industrial real estate include telecom buildings, showrooms, laboratories, logistics and distribution centers, manufacturing, storage, and much, much more.
Many investors don’t even recognize this arcane sector is accessible let alone how to start and make a profit. At AREIGCORP, our team has decades of combined experience purchasing, selling, renovating, and renting properties in this area. It’s a reliable, cash-generating, and unique section of the commercial real estate market that every investor should at least feel comfortable with. Now you can!
As with any commercial investment, the demand is always high. However, industrial has an added advantage as there are fewer industrial properties than standard commercial ones, leading to a more competitive market and higher rates. Self-storage units, warehouses, and fulfillment centers are just a few examples of how businesses would use this space.
The toughest part of real estate is finding worthwhile tenants. Renting out industrial property is less risky than other investments because of the type of tenants these high-end, expensive properties attract. Plus, industrial tenants usually request longer leases ranging anywhere from a few years to an entire decade represents a more stable investment.
Perhaps the most attractive part of industrial real estate investments is the higher yields. With a lower rate of tenant turnover, reduced market fluctuations, and longer leases, investors can expect to see impressively high ROIs when the property is picked.
When compared to other kinds of commercial spaces, industrial properties are easier to manage and maintain. The tenants attracted to these properties generally have some technical know-how and have a vested interest in keeping the space up and running. Unless a considerably large issue arises, most issues should be resolved by the tenants themselves.
If you’re interested in learning more about the opportunities that industrial properties offer, feel free to reach out to the AREIGCORP team. Our highly knowledgeable team will be more than happy to answer all of your questions and show you how this awesome investment opportunity can become part of your profile.
Mustafa and his team are knowledgeable in the Oakland market and look forward to providing you with their expertise on your next investment decision.