What are the six different types of industrial property and how do they differ?
There are six primary forms of industrial property, according to Jean Francois Desormeaux. Heavy manufacturing, light manufacturing, flex space, flex office, and distribution warehouse properties are examples of these types of properties. They’re all tailored to the needs of the current occupant. These structures are energy efficient and are usually occupied for a long period of time. They’re very customizable and provide investors with a sense of security and peace of mind. The six types of industrial properties are shown below, along with their differences.
Class C — These are usually huge, single-story structures with a high ceiling and a lot of racking. They’re usually in less desirable regions and have the cheapest rent. Despite their low value, with updates and restorations, they can be transformed into higher-quality assets. Improvements and renovations can significantly increase the asset’s value, depending on the size and type of industrial property. These properties offer excellent potential for passive investment, in addition to owner/user enterprises.
Jean Francois Desormeaux said that Manufacturing, assembly, and logistics, are examples of special uses for industrial features. In general, fewer than 20% of office space will be found in these buildings. These homes are adaptable, which means they may be tailored to a specific tenant’s requirements. Heavy and light assembly spaces are the two most common types of manufacturing features. Heavy manufacturing plants generate large quantities of commodities and have plenty of room to load trucks and operate other machinery. Light assembly areas, on the other hand, are less complicated and are more likely to be used as worker offices.
Companies that use a lot of machinery and equipment can benefit from these qualities. These facilities could be vast and sophisticated, requiring a wide range of materials. There may be a lot of office space in these buildings. Light manufacturing, research & development, and distribution facilities are all examples of typical applications for this sort of property. Showrooms and manufacturing areas are the most typical types of flexible industrial facilities. Small or medium-sized businesses may occupy these spaces.
Jean Francois Desormeaux observed that Light Assembly — These industrial features are frequently utilized for light manufacturing. These characteristics, on the other hand, are incompatible with massive manufacturing. On the other hand, light assembly industrial properties have greater storage capacity than the others. It’s also perfect for manufacturers with vast warehouses. It’s also perfect for businesses that need to relocate but can’t. It is in an excellent location for flex-industrial use.
Flexibility: These features are quite flexible. They are adaptable to a wide range of applications. A number of businesses, for example, can use them. An electronics tenant, for example, would have a 10,000-square-foot office and a 20,000-square-foot electrical testing facility in a 40,000-square-foot space. In addition, CRE investors should look into infill industrial buildings. They’re adaptable and can be used by a wide range of people.
Industrial buildings are frequently thought to be low-risk. These are typically better suited to customers seeking instant cash flow and land appreciation. In comparison to other types of commercial property, they have a higher level of trustworthiness. Data centers and other types of businesses can benefit from this type of property. Before you make a final selection, you should think about the dangers associated with each type of industrial property. For example, the Class A property is ideal for manufacturing companies since it includes all of the essential infrastructures.
The six forms of industrial property can be classified into three groups based on their intended purposes. Some are meant for single usage, while others are adaptable. This type of property is perfect for businesses that create large quantities of products. They may necessitate a combination of structures. They also necessitate the use of specialist plumbing and HVAC systems. These structures are usually more mobile and have a more adaptable interior.
Finally, there are six different forms of industrial property to consider. A manufacturing and processing area is referred to as an industrial property. It’s usually small and has a place where you can put your things together. The term “industrial property” is also used to describe it. Commercial property comes in a variety of varieties. An office space, for example, is a commercial facility that is utilized for business. A factory, warehouse, or workshop is a desired sort of property for someone searching for a place to put their business.