What are the Pros of Investing in Industrial Real Estate?
Interested in an investment opportunity? What about industrial real estate? Industrial real estate includes buildings and land related to/suited for or utilized by industrial activities such as production, manufacturing, warehousing, research, light storage, assembly, and distribution.
Industrial real estate is a huge opportunity in real estate you don’t want to miss. The income and equity potential of commercial real estate investing is larger.
Industrial real estate is known for its longer leases, steady returns, and higher yields. Commercial real estate properties offer a very lucrative market for investors of varying budgets and experiences. At HOWE Real Estate, we take pride in helping clients unlock the true potential in these properties. We find the best opportunities for our clients maximize returns on investment. Industrial real estate is a valuable option for investors in the Louisville region.
At HOWE Louisville, we work with real estate investors and small business owners who are interested in industrial spaces. We know this can be a daunting process for investors, so our goal is to provide unrivaled support.
For this article, our team at HOWE Louisville, wanted to share some pros of investing in industrial real estate.
Higher yields: The value of industrial real estate comes from the number of square meters available for rent, which means you’ll get a higher rental income. Market real estate fluctuations also have less of an impact on industrial real estate in general. Industrial real estate is considered a low-risk option.
Net leases: Most leases in industrial real estate are net, which means they are longer lease agreements. Also, tenants are responsible for many major expenses unlike other types of real estate.
Tenant responsibility: Your tenant is more likely to make repairs and maintain the look of the building since it reflects his/her company.
Lower turnover: On average, industrial real estate properties have a lower turnover rate than other commercial investment properties, which can save you a lot.
Flexibility with facilities: Industrial spaces come in all sizes, shapes and requirements, and can be reconfigured to accommodate the needs of different tenants.
High demand: industrial property investment is becoming very popular with investors. Properties such as warehouses and fulfillment centers (Amazon) do better with a market downturn than other commercial properties.
Low maintenance: These properties are easier to maintain than other commercial spaces. Like stated early, industrial tenants are handy, and they can resolve most issues themselves.
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Industrial properties can withstand more ups and downs than other types of property. This type of property is also a great way to diversify your investment portfolio.
Whether you’re new to investing or a long-time investor, you can benefit from investing in a commercial space, especially with our team at HOWE Louisville looking out for your best interests.
Industrial real estate is an expensive investment, but with the above list, you can see the benefits you get from the investment. If you would like to know more about the many benefits of investing in an industrial property in Louisville, our team will be more than happy to answer all your questions
Let our team of professionals at HOWE Louisville help you get started on looking for industrial property. We work with buyers, sellers, lessors and lessees across all property types in and around Louisville. To contact us, send us an email or call 502-890-4475.