Real Estate Agency
Our Industrial Real Estate Agency is an extension of our Commercial Real Estate service. Industrial property is one of the three main asset classes of commercial property. Although industrial property is defined as the use of industrial purposes, it actually covers a large range of business types. As an investor, you may be wondering what size of industrial property to purchase. This really depends on the type of building you are looking for and the function of that building. We help narrow down your options so that you can move forward and make a selection that will make your investment worth it.
Here is how we categorize different types of industrial building and properties for our clients:
CLASS A INDUSTRIAL
These buildings are known as being the newest and highest-quality structures available on the market. Since these buildings are so new, they also have the latest technology, making them very desirable. They also have mechanical and utility systems that can give your business a big advantage amongst competitors. Owing one of these buildings is advantageous because they have high-income earning tenants and very low vacancy rates. This means that you will have tenants you can rely on. If a tenant does leave, you will not have to wait long to find another eager tenant to lease your building.
CLASS B INDUSTRIAL
The class includes older buildings and new buildings, but without the added technology and conveniences. This means that the rental income will be lower than a Class A property. Despite this class, these buildings are still well-maintained and present a chance for valuable opportunity. If you purchase one of these buildings, we can actually advise you on how to make improvements that will upgrade it to a Class A. Since you can get a better deal, you will still be able to afford renovations. So, if we find you an ideal location in this category, it is worth your consideration.
CLASS C INDUSTRIAL
These properties include buildings that have been around for 20 years or longer. These are sure to come with maintenance issues and tend to be in less desirable locations. In this situation, passive investment opportunities are less likely. This industrial class is for investors who have the time, money, and desire to creatively improve this type of property. These properties are sold at a significantly lower price. With our advice and guidance, along with your willingness to commit to significant renovation and update, you can gain significant benefits from this investment. Any work you do will add value to the property.
Small sites include single and double buildings that are zones for industrial use. Most of these buildings are designed as flex spaces, meaning the interior space can be used for different types of small businesses. For example, if you are a mechanic or you are invested in a mechanic business, this would be an ideal property for you to invest in. These buildings are also great for start-up companies and laboratory research due to their ideal layout.
Large properties have both medium and large warehouses and factories. These businesses are designed for manufactures or to produce store goods.
Enormous industrial spaces are used to house distribution centers. Distributions centers house and distribute goods directly to customers or to their store locations. When you shop a store online, you are most likely receiving an item from a company's distribution center even though you are purchasing it through the store website.
HOW CAN WE PROTECT YOUR INDUSTRIAL REAL ESTATE INVESTMENT?
Having our qualified professional assist and advise you when investing in industrial real estate can greatly benefit your business. You can benefit from higher yields because industrial properties come with higher rental incomes. These properties are also valued higher per square foot than smaller properties, making your building worth more. You can also get fixed annual price increases, which means you will be making more money off your tenants each year.
When tenants sign to lease an industrial building, they are there to build their business. Instead of single year leases, you will be closing on much longer agreements. In some cases 10 years leases are not uncommon. This provides you with more financial security and stability. Since tenants pay net leases in this circumstance, they are responsible for costs that an owner would normally pay, including: utilities, maintenance and repair costs, and insurance costs.
One of the biggest benefits of our industrial rental agency service is how we protect you and find you quality tenants, preventing you from taking on risks that could hurt your investment. We protect you from vacancy risks by creating and reviewing contracts that support your interests, should the business your building is housing go under. We also guide you through the process of getting a loan from a bank. Since interest rates are higher for industrial investments, we make sure you are aware of the details of any agreements you make with the bank. This is the best way to determine if borrowing money is worth the risk.
When you are ready to take on an industrial investment opportunity, we are here to provide you with real data and reliable information. You can make an informed decision and feel confident knowing we have helped set you up for success. To find out what locations are currently available on the market and discuss all of your options, call us to set up an appointment today.