Key Factors to watch out for with Industrial Investment Real Es

• Posted by Tag Industrial 18 July 2020 - Filed in Other - #industrial investment real estate  - 59 views

  Industrial real estate is a sector of real estate that deals with manufacturing units, industrial warehouses, factories, distribution canters, etc. This is a flourishing field in the U.S. as the cost of acquisition is minimal compared to the cash flow it generates. This blog provides factors to consider before you choose industrial investment real estate:

  1. Market Study: The last thing you would want is a vacant real estate property after making huge investments. To avoid that situation, an investor should look for markets where demand for space is high and the supply is limited. One should look for markets where occupancy rates are higher so that rent keeps on increasing.

  2. Tenant’s Credibility: This is another important aspect that involves assessing the payment history of the tenant. As an investor, you should look for the financial stability and liabilities of the lessee to ensure timely rental payment. You can also hold a security deposit that is a new norm in industrial investment real estate.

  3. Location: It is key to strive for higher rental income from the lessee. The industrial property’s location is critical, as much of their business depends on the logistics partner hub. Thus, if your property is near such a hub where the supply chain of the industry will not be affected, then you will be in a better position financially. 

  4. Design and Specifications: Industrial units usually have a pre-defined office to warehouse ratio with small spaces for cabins and other packaging services. As an investor, you should target such a property that suits the industry’s configuration. 

  These are the industrial investment real estate considerations to think through before acquiring property. To make this task easy, there are experienced real estate brokers like TAG Industrial who can help you in identifying such properties.
  
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