Modern Distribution Space Is What’s In Demand:
Modern, quality distribution space is in high demand in the industrial property sector.
The distribution and fulfillment space has experienced the fastest rent growth.
General distribution space is a relatively safe bet for first-time industrial investors.
An Industrial Asset’s Location Is Paramount:
The location of an industrial property is crucial for its success.
Proximity and easy access to major transportation corridors are important.
Industrial research labs and specialized buildings have high demand but may be more expensive to invest in.
Which Interior Features of Industrial Buildings Are the Most Important?:
Clear heights are essential for distribution centers.
Clear heights determine the amount of inventory that can be stored.
Loading docks are critical for loading and unloading products.
The configuration and setup of loading docks are important.
Column spacing affects the efficiency of operations in distribution and logistics buildings.
Most Important Exterior Considerations for Industrial Investing:
Truck courts are crucial for distribution operations.
Proximity to major transportation corridors benefits operations and tenant demand.
Truck Courts and their Importance:
Truck Courts are the area adjacent to a building's loading docks that consists of the loading and truck maneuvering areas.
Truck courts play a crucial role in logistics distribution properties as they can impact the efficiency and safety of operations.
The standard depth of a truck court is around 120 feet, but newer properties often have larger truck courts.
Trailer Parking in Logistics Centers:
Trailer parking is an important consideration for major logistics centers to accommodate heavy traffic.
Investments in assets with secured truck courts or trailer parking can be beneficial.
Repositioning Opportunities for Industrial Investments:
Repositioning a dated industrial facility can yield high returns and be a valuable investment strategy.
Buying a Class B asset at a lower price point and improving it can lead to significant returns.
Key Considerations when Investing in Industrial Real Estate:
Location, access to transportation, and proximity to major terminals and transportation hubs are important factors to consider.
Setting realistic assumptions expectations is crucial for success in industrial real estate investments.
Advantages of Investing in Industrial Real Estate:
Investing in industrial real estate can offer strong returns and repositioning opportunities.
Tax benefits, such as accelerated depreciation, can further enhance the advantages.
Risks Associated with Investing in Industrial Real Estate:
Tenant default, longer lease terms, and slower leasing velocity are common risks.
Value-add opportunities may be necessary to maximize returns on industrial real estate investments.
